Former President Donald Trump's social media company, Trump Media & Technology Group, saw its shares surge by as much as 59 percent on its first day of trading on Wall Street. The company's stock reached $79.38 per share at its peak before closing 16 percent higher at $57.99, resulting in a market capitalization of nearly $8 billion.
Despite operating losses of $10.6 million for the first nine months of 2023, Trump Media's strong market debut came after it completed its merger with shell company Digital World Acquisition. Trump launched the social media platform Truth Social after being banned from mainstream platforms like Facebook and Twitter following the January 6 insurrection at the US Capitol.
Trump, who owns nearly 60 percent of the company, now holds a stake worth about $4.6 billion. The success of Trump Media's market debut is significant as Trump faces mounting legal bills and four criminal trials while seeking re-election in the 2024 US presidential election.
Despite the initial success of Truth Social, Trump has been struggling to raise money for his campaign and legal expenses. He recently faced a large bond payment after a New York court ruled that he and his family business lied about the value of his assets for years. However, a New York appeals court reduced the bond payment from $454 million to $175 million and gave him an extension of 10 days to pay, which Trump has committed to doing.
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