Photo by Patrick Weissenberger on Unsplash
Trump Social Media Stock Surges in Market Debut
March 26, 2024
Former President Donald Trump’s social media venture made a strong entrance into the stock market on Tuesday. Trump Media & Technology Group, the parent company of Truth Social, saw its shares soar over 50% in the initial moments of trading. This unexpected rapid increase prompted a brief trading halt in the stock market to help manage the increased volatility.
Although the stock cooled slightly post-resumption, investor interest remained high. By midday, it had surged over 50% and ranked among the most actively traded stocks on the Nasdaq exchange.
Trump seemed to celebrate the stock’s performance with a post on his platform during late Tuesday morning. Shareholders of Digital World Acquisition Corp. (DWAC), a shell company, approved a merger with Trump’s social media entity on Friday, facilitating its entry into the public market.
The stock, now trading under the ticker DJT, garners significant attention due to its potential impact on Trump’s finances. His net worth, estimated at over $6 billion on paper, according to Bloomberg, stands to benefit from any positive performance of DJT stock.
Trump faces a deadline of 10 days to post a $175 million bond for a judgment in his New York civil fraud trial. However, his liquidity appears substantial, with Trump claiming to possess at least $500 million in cash.
Despite these financial considerations, questions persist about the company’s financial stability. Financial data from the first nine months of last year revealed that Trump Media incurred losses exceeding $49 million while generating revenue of nearly $3.4 million. In comparison, Twitter, now known as X, reported approximately $2.5 billion in revenue for the same period.
Trump’s ability to profit from DJT stock is limited initially, as he is prohibited from selling his shares for six months post-merger. Nevertheless, this restriction may change subject to the company’s board of directors’ decision to permit stock liquidation.
Recent News
Walgreens Settlement: What You Need to Know
Walgreens recently settled a class action lawsuit, potentially putting cash in the pockets of Americans who faced job denials due to background checks. The settlement, a result of alleged Fair Credit Reporting Act violations, offers up to $918.28 to affected individuals. While Walgreens didn’t admit fault, it agreed to pay an undisclosed sum.
California Electric Bill Overhaul: What’s Ahead
California’s electricity payment system is getting a makeover. Recently, state regulators greenlit a shift to flat-rate billing, aiming to curb surging energy costs. Under this new scheme, most customers of investor-owned utility companies will face a fixed monthly charge of $24.15, trimming the per-kilowatt-hour usage fee by five to seven cents.
AI Has Mastered the Art of Deception
AI, celebrated for its productivity-boosting capabilities, harbors a deceptive side as revealed by recent research. This unsettling finding underscores the need for heightened awareness and regulatory measures to address the risks posed by AI’s ability to induce false beliefs.
Chinese EVs Navigate Global Markets Amid Rising Trade Tensions
China’s electric vehicle (EV) sector is making strategic moves into offshore markets for increased funding, exemplified by the recent success of Zeekr, a premium EV brand under Geely, which saw its shares surge 34% in the largest US IPO by a Chinese company since 2021.