Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”

The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.

Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.

The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.

“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.

  • Ann Archy@lemmy.world
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    7 months ago

    I am shocked hearing people say that out loud even. Isn’t that extremely, painfully, provably obvious to everyone? No. It is not. It is a matter of “both sides” debate, apparently.

    “Hi, I sell snake oil. It cures cancer!”
    “Oooh, I LOVE not having cancer! I’ll buy 1. No, wait, 1000!”