Trump Social Media Stock Soars After Going Live on NASDAQ Exchange

Donald Trump has had a couple of really good days in the stock market.

Recently, the company behind Truth Social went live on the NASDAQ exchange under the symbol DJT.

Over the last two days, the stock has been flying all over the place as investors try to find the sweet spot.

Rising

On the first day of trading, DJT was quite volatile, topping more than $70 at one point, but it wound up closing at $57.99 for the day.

The stock exploded on Wednesday, too, as investors got in and out very quickly to turn a tidy profit.

At its high point for the day, the stock hit $71.93, collapsed down to just over $62 per share, then slowly worked its way back up to $66.21 as of Wednesday afternoon.

On paper, this is a windfall for Trump, who has a 60% stake in the company, which would equate to more than $5 billion for the former president.

Currently, however, his stocks are frozen and he cannot sell them unless the board would agree to unfreeze his stock, but the former president has been adamant that he has no plans to cash out just yet.

Experts are now chiming on DJT’s roller-coaster ride over its first two days, saying that the valuation of the stock defies logic.

Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, stated, “This is a very unusual situation. The stock is pretty much divorced from fundamentals.”

Ritter added, “The underlying business doesn’t seem to be worth much. There is no evidence this is going to become a large, highly profitable company.

“I’m reasonably confident the stock price will eventually drop to $2 a share and could even go below that if the company blows through the money it got from the merger.”

There are some real concerns about this company, especially if Trump loses the election or, if he does win the election when he leaves office.

To that point, the company has still yet to turn a profit, with less than $4 million in reported income to a reported loss of more than $49 million during the 9-month span from last year.

Truth Social is Trump, for all intents and purposes. The platform has turned into an echo chamber of sorts, as most individual profiles do not get much reach or interaction, with Trump’s posts dominating the platform.

In the meantime, however, those fears and concerns seem to be irrelevant to investors who seem to be enjoying day-trading the stock, eerily reminiscent of what happened to GameStop and AMC stocks during the pandemic.

My guess here is that as long as Trump is relevant, this stock will hold its value, but the moment that Trump is gone from the news cycle, be that in eight months or four years from now, we will see a massive dip.

For now, however, Trump is all smiles, doubling or tripling his net worth overnight.