Topline
Shares of Trump Media & Technology Group—the parent company of former President Donald Trump’s Truth Social—jumped by double digits Tuesday afternoon, increasing Trump’s net worth by nearly $400 million, but the company is still trading well below its peak.
The former president was worth about $4.6 billion as of 2:10 p.m. EDT on Tuesday, according to … [+]
Key Facts
Trump Media & Technology Group, which trades as DJT, spiked more than 17% to more than $21 a share as of 2:10 p.m. EDT on Tuesday, which gave Trump a $396 million boost, according to Forbes’ real-time tracker.
Trump, who owns about 60% of the company, was worth $4.6 billion as of 2:10 p.m. Tuesday, making him the 758th wealthiest person in the world.
Tuesday marks the second day of increases for DJT, which closed 11% above where it opened on Monday after billionaire Elon Musk joined Trump at his Butler, Pennsylvania, rally on Saturday.
DJT shares have been slowly increasing after hitting new lows in September when the ban prohibiting the former president from selling his shares in the company expired.
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Key Background
Trump Media executives were able to sell their shares in the company beginning on Sept. 19, when the lockup period—a standard procedure for public companies aimed at preventing certain shareholders from selling shares for a period of time—ended. But when the lockup period ended, Trump dispelled concerns that he would divest, which could drive down the company’s share price, saying “I’m not selling, I love it.” Shares are up almost 80% from their low in September. The company is still far below its peak of over $66 a share after it went public on March 26 by combining with blank-check firm Digital World Acquisition Corp. Trump Media has reported strikingly low revenue, but it has often been considered a highly volatile “meme stock,” or a stock that became popular through social media and has price changes in response to non-earnings developments, like the assassination attempts on Trump or his performance in presidential debates.
Tangent
Last week, Trump Media revealed in a regulatory filing its chief operating officer, Andrew Northwall, resigned in late September. The company did not say why Northwall left but said it would be transitioning his duties internally. Northwall said in a post on Truth Social he was grateful to Trump and “being part of TMTG has been one of the most rewarding experiences of my career.” The same day his departure was announced, ProPublica reported the company was forcing out executives amid internal allegations of mismanagement.
