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.

    • originalucifer@moist.catsweat.com
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      8 months ago

      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

        • girlfreddy@lemmy.caOP
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          8 months ago

          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. :(