Donald Trump’s social network is off to a flying start on the stock market

At Truth Social’s current stock price, Trump controls more than $5 billion.

The media company of former American president and current presidential candidate Donald Trump made a flying start on the stock exchange on its first day of trading. Shares of Trump Media and Technology Group (TMTG), the parent company of Trump’s social network Truth Social, were up more than 34 percent from their opening price around 5 p.m.

The ex-president founded Truth Social after he was banned by Twitter and Facebook in the aftermath of the storming of the Capitol by his supporters.

Shortly after Wall Street opened, trading in TMTG shares, which are in high demand, even had to be suspended for a few minutes before resuming.

Donald Trump is the main shareholder of TMTG, which controls several tens of millions of shares in the newly listed company. According to various estimates, his stake would be valued at more than $5 billion on paper, given the current share price.

Trump could use the money, given his hefty legal costs. But normally he can only sell his shares in the company in six months. However, it cannot be ruled out that he will find a loophole, through a loan against his shares or by convincing the directors to sell his shares earlier. After all, these directors are all Trump loyalists, such as his son Donald Trump Jr. and a number of people who worked for his government.

“I love Truth Social, I love the truth,” Donald Trump said on Tuesday about his network, which was founded in 2022. He praised the success of the shares on the Nasdaq. According to analysts, the value of the share is mainly inflated by small investors who are sympathetic to Trump. Michael Ohlrogge, a professor at New York University, told the BBC that the current share price is “well above what anyone would consider the fundamental value.”