It reached a rise of more than 50%. The valuation does not correspond to reality, warn analysts
Official first for Donald Trump’s company stock, Trump Media & Technology Group (checks the former US president’s social media Truth Social), on the US stock market, with an explosive rise that exceeded 50% in just a few minutes after the start of trading.
Intense volatility in the stock, which trades under the symbol DJT (the former US president’s initials) on the Nasdaq, led to a trading halt in the stock for a few minutes. More than 6.5 million shares of Trump Media & Technology Group changed hands in the first 20 minutes of trading.
The stock has stabilized above $71. (with an increase of more than 40%).
The stock symbol, DJT, “is a tribute to former president and director and 45th president of the United States, Donald J. Trump,” Trump Media said in a statement.
Wall Street values ​​Trump Media to the astronomical amount of 13 billion dollars.which according to analysts does not correspond to reality.
“This valuation may reflect more of the enthusiasm of Trump supporters than a reasonable assessment of the company’s business prospects,” said Thomas Hayes, president of Great Hill Capital.
THE value of the majority package that Trump controls in Trump Media, is estimated at $5.38 billion. It is reminded, however, that based on the law, he cannot sell or pledge his shares for the next six months. That’s because the stock’s trading on the stock exchange is a result of the merger with Digital World Acquisition Corp, which was approved last Friday.
Source: Skai
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