From $70 to Questioned: The Mixed Reactions to Donald Trump’s Media Company Stock Market Debut

Stock market debut of Donald Trump’s media firm sees substantial growth

The stock market debut of Donald Trump’s media company has been met with mixed reactions. While shares in the company surged, reaching an opening value of over $70 per share and giving the company a market value of over $9 billion, analysts are questioning the valuation of the company.

Trump Media’s flagship platform, Truth Social, generated just $3.3 million in revenue in its first nine months and suffered losses of nearly $50 million. Despite claims that 8.9 million accounts were created since its launch, it is unclear how many are active users. Trump, who owns more than half of the company’s shares, is currently unable to sell his holdings due to legal restrictions.

The board of directors for Trump Media includes allies such as one of Trump’s sons and could potentially change these restrictions to allow him access to his stake immediately. However, analysts believe this is unlikely to happen soon. The merger between Trump Media and Digital World Acquisition Corp was first announced in 2021 and delayed due to government investigations before proceeding earlier this year.

Despite these questions about the company’s value and performance, the successful listing on the stock market marks a significant milestone for Trump Media. The majority of Digital World shareholders were individual investors who reportedly supported Trump during his presidency.

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