Shares of Trump Media & Technology Group surged higher again on Wednesday, marking another boost to former President Donald Trump’s financial portfolio.
The company’s stock rose 14.2 percent to $66.22 on Wednesday. On Tuesday, the shares started trading under the ticker symbol DJT, Donald Trump’s initials, after the merger of Trump Media with Digital World Acquisition Corp., the special-purpose acquisition company set-up to take Trump’s social media platform Truth Social public.
The increase follows a Tuesday rise of 16 percent, lifting the company’s market valuation to roughly $8 billion. Trump’s portion—around 60 percent of the company—is estimated to be worth about $4.8 billion.
The rapid rise in the price of the shares has many on Wall Street skeptical and investors have been mocked by Trump’s critics. Some have compared it to the “meme stock” surges that boosted the prices of shares of companies like AMC and GameStop a few years ago.
It is still an open question about whether Trump will be able to use this windfall to meet the requirement to post a $175 million bond to appeal the civil fraud case in New York that results in a $454 million judgment against him.
The shares are subject to a six-month lockup period which bars him from selling his stake or using it as collateral for a loan, though Trump could seek a waiver from the company’s board. The board would likely have to find the waiver is in the best interest of the company and its shareholders.
The company’s shares are not widely followed by Wall Street analysts, so there is no consensus price target. During the first nine months of 2023, Trump Media reported a revenue of $3.4 million against a loss of $49 million. Many technology start-ups—including Twitter, Amazon, and most recently Reddit, have gone public while losing money.