One month since Trump Media & Technology Group Corp. went public. on the Nasdaq stock market, the stock price fluctuated up and down with no signs of slowing down.
Just like Donald J. Trump, this stock is anything but predictable, but unlike any other stock, its most important value is not its earnings, its performance, or its prospects, but the man’s personality.
An ABC report has put Truth Social’s holding company in the spotlight after Trump launched the social media platform following his ban on Twitter/X and Facebook following the Capitol insurrection in January 2021.
On March 26, when Trump Media was revealed, the 45th President of the United States and almost certain Republican nominee in the upcoming election later this year posted on Truth Social: “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH.”
It was bold, brash and typical of the man, but the first performance was far from convincing. On the first day of trading there was a 59% boom to $79.8. With his personal control of around 65% of the shares in this company, Trump’s wealth shot up to $8 billion on paper, but was unable to do so due to the “lock-up” regulation that prevents insider trading with new investors Bank bring issued shares for six months.
What are the prospects for Trump Media and Truth Social?
Stocks have fallen and recovered since then, but supporters are largely individuals who share the Trump “cause” as a bulwark against big tech companies and establishment forces.
Julian Klymochko, CEO of Calgary-based Accelerate Financial Technologies, described the deal as “all out of the ordinary.”
“I call it the mother of all meme stocks,” he said, using a term associated with Trump Media and other causes caught up in online razzmatazz far beyond what traditional understanding dictates .
For the legions of Trump supporters, the stock also represents a raison d’être by putting their money behind the MAGA cause. Conversely, institutional investors have largely avoided Trump Media.
The prospects of the company and Truth Social as a platform appear uncertain and unclear at best, with many doubts abound. There is also the real potential of a Trump return to the White House at the end of the year, which would put him back at the top of the headlines and thus likely provide a boost to Trump Media’s shares and value.
It could be a meme or a roller coaster ride, a few more ups and downs are guaranteed, but who will have the last laugh?
Photo credit: Ideogram