Trump’s Truth Social rises 16% on its first day of trading
On its first day of trading as a public company, shares of Truth Social, the social media startup owned by former President Donald Trump, rose 16%.
This rise came after the addition of the SPAC deal – known as a “blank check” – which is the largest deal of its kind in years, and which added billions to his wealth, at least in paper form.
Shares rose nearly 59% in early trading, valuing the company at more than $9 billion, but it ended the day at around $58, representing a 16% increase from the opening price.
Trump’s stake – about 60% in the company – is believed to be worth more than $6 billion, according to Bloomberg calculations.
However, Trump cannot sell his stake immediately due to a 6-month lock-up agreement, hampering his ability to liquidate the shares and alleviate his current cash crunch.
It should be noted that Truth Social was created as an alternative to major communication platforms such as X (Twitter), and its service generated revenues estimated at approximately $3.3 million only during the first nine months of last year, and incurred losses of approximately $50 million.
On the other hand, Reddit, which has more than 70 million users, achieved revenues of $800 million last year, and its market value is currently estimated at about $11 billion.
This sharp increase in Truth Social shares reflects investor interest in media outlets associated with Trump, which may be influenced by developments in his political campaign and future legal challenges.
The question remains how the stock’s value will develop in the coming weeks and months, especially with changing expectations related to the company’s future and the challenges it may face.
