A Trump Media & Technology Group (TMTG) entered the New York market, where it became part of the Nasdaq technological index, on March 26, through the merger with an instrumental company, called Digital World Acquisition Corp., created with the sole purpose of put another company on the stock exchange.
Efe now recalls, in an article signed by Nora Quintanilla, that this instrumental company, called SPAC in its English acronym, went from being worth less than 50 dollars per share the day before it began to be listed to reaching 70 dollars, after being merged. with TMTG.
Then, there were even a few hours when it reached 79 dollars.
It was good news for Trump, the majority shareholder, with a stake of around 60%, although a clause prevents him from selling shares until September, which means that his assets are linked to the evolution of the listed company and that this money it is blocked at the moment it needs liquidity.
However, the financial fundamentals that TMTG has released so far, and those favored by analysts and investors, reveal an unflattering picture, with losses of 58 million dollars in 2023, forecasts of future negative results and also the exposure of weak internal controls .
This situation made TMTG attractive to speculators known as ‘short-sellers’, corresponding to funds or individuals who make money from betting on the devaluation of a listed company and popularized the concept of ‘meme stock’, applied to volatile securities such as GameStop or the AMC.
After the criminal trial against the former president began in New York, TMTG shares fell 15% and fell again by another 10%, after announcing that it was betting on television continuously.
In any case, the expectation of the listing of Trump’s company on the stock market, which initially boosted its share price, gave way to a logic of prioritizing money over politics, which is causing headaches for the company’s directors. TMTG.
The company’s chief advisor, Devin Nunes, a former leader of the Republican Party, asked Nasdaq managers for help to face what he considers to be stock market “manipulation”, accusing four firms, which represent 60% of its transaction volume.
One of the targets, the investment fund Citadel, assured that it follows the law and called Nunes “a proverbial loser”, a language that has a history, since Citadel’s director, Ken Griffith, supported Nunes’ campaign for Congress, before it switched to Trump Media, and also supported Nikki Haley, who competed with Trump for the Republican nomination for the next presidential elections.
Political disputes and stock market speculation aside, Trump Media closes its first month with shares at 40 dollars and a capitalization of 5.770 billion dollars, an intermediate point between the initial maximum of 70 dollars and the minimum of 22 dollars it recorded when the trial began.
Trump faces high fines following the Trump Organization fraud and defamation trials against writer E. Jean Carroll, as well as expenses for other lawsuits, not to mention his campaign as the main Republican candidate for the White House.
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Eighth consecutive year Consumer Choice for Online Press and elected product of the year 2024.
* Study by e Netsonda, Nov. and ten. 2023 product of the year – pt.com
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Eighth consecutive year Consumer Choice for Online Press and elected product of the year 2024.
* Study by e Netsonda, Nov. and ten. 2023 product of the year – pt.com
