(Bloomberg) — Former president Donald Trump’s Trump Media & Technology Group Corp. is powering higher on Wednesday after a stellar debut.
Most Read from Bloomberg
Investors are flocking back to the parent company of Truth Social, driving shares up nearly 18% in early trading — adding some $1.4 billion to its value. The steady move higher comes after the stock jumped to a roughly two-year peak on Tuesday when the media startup traded for the first time as a public company. The gains bring Trump’s personal stake to more than $5 billion, adding to the former president’s paper wealth.
More than 6 million shares changed hands Wednesday morning, making it one of the most actively traded companies in the US. The strong interest comes after the stock saw its busiest day since the company announced a blank-check merger with Digital World Acquisition Corp. in October 2021 with nearly 56 million shares traded.
The firm behind Truth Social has stated its mission to fight against big tech companies like Meta Platforms Inc., Netflix Inc., and Elon Musk’s X, has drawn hoards of individual investors that are touting their investments on popular chatrooms like Reddit Inc.’s WallStreetBets forum and StockTwits.
The potential funds come at a critical time for Trump, who is paying millions of dollars a month to fund his ongoing legal troubles. He’s set for the first of his criminal trials on April 15, and a New York judge has already imposed a gag order. Separately, Trump was told by a different judge last month to pay $454 million after a civil ruling that he had fraudulently inflated his wealth for years.
Read More: Donald Trump Is Richer Than Ever — Yet Still Strapped For Cash
The stock — which traded under Digital World’s ticker DWAC prior to this week’s debut — soared some 230% this year through Tuesday’s close, as investors use it as a way to bet on Trump’s 2024 re-election campaign. The eye-popping rally has also made it the most expensive and riskiest stock for short sellers to bet against.
Most Read from Bloomberg Businessweek
©2024 Bloomberg L.P.