BREAKING: Trump’s $DJT Stock Explodes On First Day On Nasdaq

The stock for Truth Social’s parent company soared on its opening day, rising 50% from its opening as the trading floor clamored for a piece of former President Donald Trump’s latest arm to his business empire.

CNN reports that Trump Media & Technology Group, which owns Trump’s social media company, garnered an eye-popping $14 billion valuation by Wall Street ahead of the opening bell. Running under the ticker DJT, Trump Media — which merged with shell company Digital World Acquisition Corp — saw Monday’s trading complete a 200% rise in the company’s stock value this year.

President Trump, who owns a 78% stake in the company, saw his net worth swell by $6 billion as a result of trading, making it the single greatest one-day return for him in his career. The stock opened Tuesday morning at a price of $78 per share.

Analysts are continuing to monitor the fundamentals of President Trump’s venture, which they say will need to increase its quarterly revenues if it is to sustain the lofty valuation by Wall Street.

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“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 studied initial public offerings for 40 years. He warned that the DJT stock could ultimately settle far below its current share price.

“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,” he added, warning that investors who previously lived through the era of meme stocks like AMC and Gamestop should be cautious about approaching the next opportunity for volatility.

Trump Media brought in $3.4 million over the first nine months of 2023, presenting an opportunity for advertisers to flock to Truth Social as it shifts the spotlight away from X which has struggled with its own attempts to keep advertisers from looking elsewhere.

The evolving landscape of social media is further compounded by Congress’ looming vote to ban TikTok or force the sale of the Chinese-owned company to domestic hands. Former Trump Treasurer Secretary Steven Mnuchin told CNBC last week that he is putting together a small group of investors willing to approach the company, which is currently valued at $260 billion.