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.
Yeah, that goes with the Tesla stock among others.
Edit: Many of these are becoming just a popularity contest at this point.
a popularity contest that a huge percentage of us are forced to have our retirement accounts through. awesome.
the stock market is a scam in which we are forced to participate
Your retirement plan doesn’t have bond and money market options?
Mine is locked into the stock market by way of a former employer and worker’s comp (I’m Canadian).
I can’t move them to GIC’s or any other form of investment. :(