It was the first official day of trading for social media company Truth Social, now trading on the NASDAQ exchange under the ticker symbol DJT. And if the trading for Truth Social is any indication of what will happen in November, Joe Biden may want to start calling moving companies now. Shares of Truth Social were up over 50% at one point in Tuesday’s trading session.
With the recent massive run-up, the stock’s market cap ultimately surged to around $9 billion, giving former president Trump himself an equity stake valued at about $5 billion. Of course, one of the biggest questions was when he could actually convert that equity stake into cash, a move that depends on his board of directors.
Given that the board of Truth Social is comprised of one of his sons, three former members of his presidential administration, and a former congressman who defended him heavily back in his first impeachment trial, it’s a safe bet the board won’t elect to hamstring him much, if at all.
But Is DJT a Good Investment?
We know the Trump influence here will draw interested parties willing to put some cash down in a bid to be part of the next major movement. And that name, that perception, certainly has value. Some users and investors will be glad to be part of something so clearly Trump. In fact, the founder of SPACInsider, Kristi Marvin, noted that Truth Social is “…a barometer for how he’s doing in the election.”
Indeed, Marvin elaborates, if Trump takes back the White House in November, that could mean a lot more users for Truth Social, eager to join in the feeling of being a winner. However, some caution that a major share sale so soon on Trump’s part might hurt perceptions of value.
Is DJT Stock a Buy or Sell Right Now?
Turning to Wall Street, there’s not much out there on DJT stock right now. We know that the value of its immediate predecessor, Digital World Acquisition Corp., soared a whopping 266.47% over the course of the last year, and most of that gain hit in mid-January of this year.
