‘The mother of all meme stocks’ – tracking Trump’s Truth Social
One month since Trump Media & Technology Group Corp. went public on the Nasdaq exchange, the share price has been up and down with no sign of abating.
Just like Donald J Trump, this stock is anything but predictable but unlike any other holding, its main asset is not its earnings, performance or prospects, it is the persona of the man.
An ABC report has put the holding company of Truth Social under the spotlight, with Trump setting up the social media platform following his ban from Twitter/X and Facebook following the Capitol riot in January 2021.
On 26 March when Trump Media was floated, the 45th President of the United States and the almost-certain Republican candidate for the upcoming election later this year, posted to Truth Social, “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH.”
It was bold, brash and typical of the man, but early performance has been far from convincing. The first day of trading saw a boom of 59% to $79.8. With his personal control of around 65% of the stock in this venture, Trump’s fortunes shot up to $8 billion on paper, but it couldn’t be taken to the bank due to the ‘lock-up’ regulation which prevents insider trading of freshly issued shares for six months.
What are the prospects for Trump Media and Truth Social?The stocks have since dipped and recovered, but the backers are mostly individuals who share the ’cause’ of Trump as a bulwark against big tech and established forces.
Julian Klymochko, CEO of Calgary-based Accelerate Financial Technologies described the business as “everything out of the ordinary”.
“I call it the mother of all meme stocks”, he opined, using a term associated with Trump Media and other concerns that get embroiled in online razzmatazz, far beyond what traditional understanding dictates.
For the legions of Trump diehards, the stock also represents a raison d’etre, putting your money where your mouth is for the MAGA cause. Conversely, institutional investors have largely given Trump Media a wide berth.
The prospects of the company and Truth Social as a platform look uncertain and unclear at best, with doubt abounding. There is also the real potential of a Trump return to the White House at the end of the year which would propel him once again to the top of the headlines and with it, a likely shot in the arm for the stocks and value of Trump Media.
It could be deemed a meme or a rollercoaster, a few more ups and downs are guaranteed but who will have the last laugh?
Image credit: Ideogram
The post ‘The mother of all meme stocks’ – tracking Trump’s Truth Social appeared first on ReadWrite.