Benzinga - by Shanthi Rexaline, Benzinga Editor.
Shares of Trump Media & Technology Group Corp. (NASDAQ:DJT) surged in premarket trading on Tuesday, ahead of its anticipated public market debut.
TMTG is set to begin trading on the Nasdaq following its merger with Digital World Acquisition Corp. (NASDAQ:DWAC), a special-purpose acquisition vehicle. The merger’s completion was announced via a press release on Monday. TMTG’s common stock and public warrants will be listed under the ticker symbols DJT and “DJTWW,” respectively, according to the companies.
The company will retain its leadership under TMTG’s CEO, Devin Nunes, and its current management team. Nunes expressed the company’s commitment to its vision in a statement, saying, “As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors.”
However, skeptics question the valuation’s justification, particularly in light of Digital World’s significant rally this year. Jay Ritter, a finance professor at Florida's Warrington College of Business, commented on the situation, stating, “This is a very unusual situation. The stock is pretty much divorced from fundamentals,” as reported by CNN.
Additionally, the fortunes of Truth Social, a platform associated with TMTG, are closely linked to former President Donald Trump, who faces financial challenges amid legal fines and multiple lawsuits despite leading in the 2024 election race.
In premarket trading, the stock surged by 19.12% to $59.50.
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