Shares in Trump Media & Technology Group Corp (NASDAQ:DJT), the owner of Truth Social, continued to rocket 11% in aftermarket trading, a day after it debuted in one of the most high-profile SPAC deals in recent times.
Donald Trump’s media group merged with Digital World Acquisition Group and began trading on Tuesday, having soared more than 74%.
Shares hit a peak of US$74.75 before slipping back to US$57.99.
However, in premarket trading, DTJ is up 11%, positioned to open at around US$64.
DTJ’s listing provided more than a US$200 million cash injection into the company, lifting it to a peak market capitalisation of US$9 billion.
Donald Trump’s 60% stake in the company would now be worth more than US$4 billion.
However, analysts aren’t all convinced of the financial prowess of the stock.
Truth Social, the Twitter rival launched in 2021 by Trump, posted a loss of around US$50 million in the first nine months of 2023, having generated revenues of only US$3.3 million.
Some 8.9 million users have signed up to the platform since it was created in 2022.
In comparison, Reddit, which listed last week and has a valuation of US$11 billion, with over 70 million users and generated US$800 million in revenues in 2023.
Julian Klymochko, CEO at Accelerate Financial Technologies, said: “The underlying business fundamentals will matter at some point. The stock can defy gravity for only so long.
“DJT is the mother of all meme stocks.”