Shares of PSQ Holdings (PSQH) rose 270% in a single trading session on news that Donald Trump Jr. is joining the board of directors at the e-commerce and payments company.
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PSQ Holdings owns and operates online marketplace PublicSquare, an e-commerce and payments company that sells products that include beauty, personal care, and clothing apparel. PSQH is a microcap stock. It has a market capitalization of less than $200 million and trades for just over $5 a share.
The stock was up as much as 175% at one point after the company announced that the eldest son of president-elect Donald Trump is joining its board of directors. “Don has been an investor in PublicSquare since before our IPO,” said the company in a written statement.
Financial Losses
PSQ Holdings went public in summer 2023 via a special purpose acquisition company (SPAC). Since its IPO, PSQH stock has declined nearly 80%, even with the big jump in its share price on December 3. The company has little revenue and remains unprofitable.
For this year’s third quarter, PSQ Holding reported revenues of $6.5 million and an operating loss of more than $14 million. Despite the company’s precarious financial position, having Donald Trump Jr. on its board is viewed by investors as a positive development.
Donald Trump Jr. has joined the boards of several companies since his father won the U.S. presidential election on November 5, including Unusual Machines (UMAC), a small U.S. drone maker, and privately held venture capital firm 1789 Capital, where he’ll serve as a partner.
Is PSQH Stock a Buy?
Currently PSQ Holdings has a Moderate Buy rating based on the one analyst who covers the microcap stock. That one analyst, Darren Aftahi at Roth MKM, rates PSQH stock a Buy with a $3.50 price target, implying 40.78% downside risk from current levels.
