On Wednesday, shares of Trump Media & Technology Group surged, recouping recent losses following the parent company of Truth Social’s announcement of its intention to launch a streaming network.
In trading on Wednesday, Trump Media shares rose 20.2% to $27.41 per share.
According to Dow Jones Market Data, this places it on track for its greatest one-day performance since the DJT ticker début on March 26. Additionally, its one-day performance is on track to be its strongest since March 25, when it surged 35.2%.
Determining the cause of the surge in the exceedingly volatile stock is challenging. Tuesday, the stock declined 14%, the same day that the owner of Truth Social announced plans to launch a new livestreaming network via its app and, eventually, television.
Although Truth Social has positioned itself as a more conservative alternative to social media platforms like Facebook by Meta Platforms and Reddit, its user base is significantly smaller than that of its competitors. In 2023, Trump Media generated $4.1 million in revenue and incurred a net loss of $58.2 million.
Former President Donald Trump’s 57% stake in the company was valued at approximately $1.8 billion as of Tuesday’s close. An additional 36 million earnout shares in the company remain payable to him. The incentive stipulates that the volume-weighted average price must surpass a predetermined set of thresholds. To receive the utmost award, the stock must remain above $17.50 for 20 out of every 30 trading days following its merger on March 25 over a three-year period.
Trump is prohibited from selling shares of Trump Media until the expiration of a six-month retention period. However, he might be able to petition the company’s board, which includes several former administrators and one of his sons, for a waiver.
Presently, Trump is being tried as the first former president to be charged with a crime. The charge is that he allegedly fabricated New York business records in an effort to sway the 2016 presidential election by bribing porn star and director Stormy Daniels, who claimed to have had an affair with the former president.
Trump has asserted that he is being prosecuted for political purposes and has denied the affair. The trial is anticipated to last between six and eight weeks. The jury selection process, which commenced on Monday, is presently in progress, with the initial seven jurors having been chosen.This article was contributed to by Liz Moyer.
