Trump Media & Technology Group's ( DJD ) Nasdaq ( ^IXIC ) rose 14% on Wednesday in its second day of trading.
The parent company of Donald Trump's social media site Truth Social jumped 16% in its first official day of trading on Tuesday. It then went public Connecting Special purpose acquisition vehicle Digital World Acquisition Corporation in a deal approved by shareholders last week.
DJD's strong debut comes amid a meme stock resurgence as some trades seen as fundamentally flawed saw eye-popping returns.
Trump Media lost $49 million on revenue of $3.4 million in the first nine months of last year, according to DWAC's SEC filings. At current levels, its market capitalization is now around $8 billion.
Other memorable names like Reddit (RDDT) and GameStop (GME) have also seen huge run-ups in recent days, while riskier assets like Bitcoin (BTC-USD) and commodities have rallied since the start of the year.
Some names come back to earth. Reddit and GameStop were down about 13% and 16%, respectively, in Wednesday trading.
Short interest in DJT shares – According to the latest data from S3 Partners, it is betting that the share price will go down rather than up – accounting for 11% of shares outstanding. Average short interest in public companies 3% to 4% range.
6 January 2021 The former president founded Truth Social after kicking off major social media apps such as Facebook and Twitter, now known as X, following the capital riots. Trump has since been reinstated to the sites.
Trump will be approx 60% share In Truth Social, the stock is currently worth about $4 billion. The merger comes as the former president faces a $454 million fraud fine. Lack of campaign fundraising He is gearing up for a 2024 re-election bid against President Biden.
But Trump will have to wait before cashing in on his stake.
Under the terms of the merger, shareholders are subject to a six-month lock-up period before they can sell or transfer shares. The only exception is if the company's board votes to make a special distribution.
Alexandra Canal Senior reporter at Yahoo Finance. Follow her on X @alli_kanal, LinkedIn, and email [email protected].
Click here for in-depth analysis including the latest stock market news and stock moving events
Read the latest financial and business news from Yahoo Finance
