On its first day, Tuesday, March 26, 2024, the stocks for Donald Trump’s social media company, Truth Social, rose by almost 50 percent. The parent company behind Truth Social, Trump Media & Technology Group, went public on Tuesday morning with the ticket DJT (short for Donald J. Trump).

They teamed up with Digital World Acquisition, a special-purpose acquisition company (SPAC), and after their merger, Truth Social was able to list publicly and sell stocks to the public. Digital World’s shareholders voted to favor the merger on Friday, March 22, 2024, and Trump Media took its spot on the Nasdaq.

Truth Social’s stock started at $24 per share on Tuesday morning, and by 2 p.m. E.T., it had shot up to $74.32 per share. Before the trading even began on Tuesday, Trump Media was valued at around $6.8 billion.

However, that value skyrocketed even more. This epic debut made Trump’s ownership stakes, which make up almost 60 percent of the company, worth more and rewarded the Trump supporters who bought shares with a share of that success.

It looks like Trump’s supporters were eager to grab a stock in Trump Media. Nasdaq had to take a break and put a hold on trading just two minutes after it started.

According to the Associated Press, many of these investors are either small-time investors showing their support for Trump or jumping on the hype train of a successful social media company’s stocks hitting the market.

Truth Social made its debut on February 21, 2023. It all started after Trump was banned from big social platforms like Facebook and X (formerly known as Twitter) following the January 6, 2021, insurrection in the U.S. Capitol.

At first, the app had some glitches, but it bounced back quickly. It even made its way to the top of Apple’s most-downloaded free apps list. The app also serves as a place for conservative political commentary.

A day before the listing, Devin Nunes, the CEO of Trump Media and former House Republican, said, “As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors.”

However, investors are still taking a chance on this company, as it lost about $49 million in the first nine months of 2023. It only brought in $3.4 million in revenue but had to pay $37.7 million in interest expenses.

Trump told the media that despite these huge losses, “Truth Social is doing very well. It’s hot as a pistol and doing great.” On Tuesday, March 26, 2024, he posted on the platform saying, “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!”

While the stock rally is happening, Trump is facing some financial challenges. On Monday, March 25, 2024, a New York appeals court said that Trump must secure a $175 million bond, albeit a smaller figure than the $454 million he was to provide initially.

Trump can’t sell or use his stake in Truth Social for at least six months. A lockup provision is in place to prevent a sudden selling frenzy that could mess with investor confidence. However, the company has already boosted Trump’s net worth.

On the heels of the company’s merger vote, Trump joined the Bloomberg Billionaires Index for the first time with a reported net worth of $6.5 billion. On Wednesday, it ticked up to more than $7 billion.

Skeptics suggest that the hype around the stock might not last long. They estimate that Trump Media has fewer users than other big players, and investors might see the stock price drop by 95 percent.

Jay Ritter, a professor and expert on initial public offerings of stock at the University of Florida’s Warrington College of Business (via AP), said, “I think there is a possibility of, sooner or later, the stock price falling by 95%.”

They’re skeptical because of Trump’s legal issues and his history of voting in his interest instead of the shareholders’.