Former President Donald Trump’s new social media platform, Truth Social, is seeing a rebound in stock value after hitting a low following his involvement in a hush money trial. The platform has gained momentum as users flock to join the alternative social network.
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Former President Trump’s social media platform, Truth Social, has seen its parent company’s stock price double on the Market in recent weeks. Trump Media & Technology Group went public on the Nasdaq on March 26, with share prices fluctuating from over $70 to under $23 in mid-April amid Trump’s hush money trial.
Finance scholar Jay Ritter warned that despite the recent increase, the stock price could potentially drop to $1 to $2 a share in the future. He suggested that the surge in stock price may be due to efforts by the company to prevent short selling.
Trump Media has provided information online to help investors protect their shares from short sellers, resulting in increased buying pressure and driving up the stock price. At the latest close, shares of Trump Media & Technology Group Corp. fell to $47.67, down 3% from the previous close.
The company’s journey on the stock Market began with a merger with Digital World Acquisition Corp., a special purpose acquisition company, in 2021. Despite initial success on the Market, regulatory filings showed significant operating losses in 2023, casting doubt on the company’s financial stability.
In addition to financial challenges, Trump faces mounting legal fees from civil cases totaling $537 million and ongoing court battles. Trump’s attempt to use Trump Media shares to fund legal expenses was hindered by a reduced bond posted by California billionaire Don Hankey to protect assets from seizure in a fraud case.
As Trump Media’s stock price continues to fluctuate and legal challenges persist, the future remains uncertain for the company and its controversial founder.
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1. Why did Truth Social’s stock price rebound after the hush money trial?
The stock price rebounded because investors felt more confident in the company’s future prospects.
2. How did the hush money trial affect former President Donald Trump’s involvement in Truth Social?
The trial had a negative impact on Trump’s involvement in the company, causing the stock price to initially drop.
3. Is Truth Social’s stock now at a higher level than before the trial?
It depends on the specific timing, but in general, the stock has rebounded from its low point during the trial.
4. Will the hush money trial continue to impact Truth Social’s stock price in the future?
It’s possible, as ongoing legal issues can still affect investor confidence in the company.
5. How can investors stay informed about developments related to Truth Social’s stock performance?
Investors can monitor news updates, company announcements, and Market analysis to stay informed about Truth Social’s stock performance.
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