Trump Media & Technology Group (DJT) soared 14% in its second day of trading on the Nasdaq (^IXIC) on Wednesday.
The parent company of President Donald Trump's social media platform Truth Social rose 16% in its first official trading day Tuesday. The company went public last week after merging with special acquisition vehicle Digital World Acquisition Corp. in a deal approved by shareholders.
DJT's strong debut comes amid a resurgence in meme stocks, as some trades that were seen as lacking in fundamentals have delivered spectacular returns.
In the first nine months of last year, Trump Media lost $49 million and brought in $3.4 million in revenue, according to DWAC's filing with the SEC. At current levels, the company's market capitalization would be around $8 billion.
Other meme-friendly names like Reddit (RDDT) and GameStop (GME) have also seen big gains in recent days, while riskier assets like Bitcoin (BTC-USD) and commodities have rallied since the beginning of the year. It's skyrocketing.
Some names are coming back to Earth. In Wednesday trading, Reddit and GameStop were down about 13% and 16%, respectively.
Short interest in DJT stock (bets that the stock price will fall rather than rise) is about 11% of outstanding shares, according to the latest data from S3 Partners. The average short interest for public companies ranges from 3% to 4%.
The former president founded Truth Social after being banned from major social media apps such as Facebook and Twitter, the platform now known as X, in the wake of the January 6, 2021, Capitol riot. Trump has since returned to the platform.
Mr. Trump plans to retain about 60% of Truth Social, a stake currently worth about $4 billion. The completion of the merger comes as the former president faces a $454 million fraud penalty and grapples with a campaign finance shortfall as he prepares for a 2024 election rematch with President Biden. It was held in
But Trump will have to wait until he cashes out his stock.
Under the terms of the merger, shareholders have a six-month lock-up period before they can sell or transfer their shares. The only exception is if the company's board of directors votes to take a special disposition.
alexandra canal I'm a senior reporter at Yahoo Finance. Follow her on X @allie_canal, LinkedIn, Please email alexandra.canal@yahoofinance.com.
Click here for the latest stock market news and in-depth analysis, including price-moving events
Read the latest financial and business news from Yahoo Finance
