Trump Media Stock Soars as Market Frenzy Takes Hold

Trump Media & Technology Group (TMTG) shares surged over 18% on Wednesday, extending their post-Nasdaq debut rally. Driven by strong investor interest in former President Donald Trump, TMTG has seen significant volatility as retail traders and established investors evaluate the platform's fundamentals. Analysts caution that the company's Truth Social platform needs to demonstrate user growth to sustain its trajectory.

Trump Media Stock Surges Amidst Market Frenzy

(By Reuters)

Trump Media & Technology Group (TMTG) shares soared over 18% on Wednesday, extending their impressive gains from their heralded Nasdaq debut on the preceding day. According to data from LSEG, the stock ranked fifth among the most-discussed on the retail trader platform Stocktwits and featured prominently within the top 15 most frequently traded stocks across U.S. exchanges by 9:40 a.m. ET.

Analysts attribute the surge to the enduring popularity of former President Donald Trump among investors. However, they emphasize that the sustainability of TMTG's growth trajectory hinges on the ability of its Truth Social platform to attract and retain a substantial user base.

"Significant volatility lies ahead," asserted Susannah Streeter, Head of Money and Markets at Hargreaves Lansdown. "The initial buying frenzy sparked by Mr. Trump's supporters may subside as investors examine the underlying fundamentals more closely."

At a price of $68.56 per share, TMTG boasts a market capitalization of $9.29 billion (undiluted). This has inflated the value of Trump's stake in the company to approximately $5.40 billion.

A regulatory filing dated February 14 indicates that Truth Social has amassed 8.9 million sign-ups. However, the company has not disclosed its number of active users.

In comparison, Twitter (X) reported 238 million daily active users as of June 2022—the most recent data available. Facebook (META) and Reddit reported 2.1 billion and 73 million active users, respectively.

TMTG and its predecessor, Digital World, have experienced a meteoric rise of around 600% since their merger announcement in 2021. This performance has cemented TMTG's status as one of Wall Street's quintessential "meme stocks."