Trump Media & Technology Group Expands into Financial Services, Stock Surges
In This Article:
* DJT +8.62%
* DJTWW +12.43%
Key Points:
* Trump Media & Technology Group (DJT) announces expansion into financial services, including cryptocurrency funds and ETFs.
* Company invests $250 million into new venture under the brand name Truth.Fi.
* Charles Schwab to provide custody and advisory services.
* Market cap of Trump Media exceeds $7.2 billion.
* DJT stock has risen significantly since the announcement.
Background:
* Trump Media operates Truth Social and Truth+, social media platforms founded by former President Donald Trump.
* Trump has a significant stake in DJT, valued at approximately $3.8 billion.
* Despite initial losses, Truth Social has recently shown signs of growth.
Recent Financial Performance:
* DJT reported a net loss of $19.25 million in Q3 2022.
* Revenue for the quarter was $1.01 million.
* Cash holdings at the end of the quarter were approximately $370 million.
Outlook and Analysis:
* Trump Media's expansion into financial services is seen as a positive move by investors.
* The company's partnership with Charles Schwab adds credibility to its investment strategy.
* Analysts remain cautious about Truth Social's long-term prospects due to its small user base.
* DJT stock remains volatile, with potential for further growth or declines.