DTJ Stock Surges on Financial Services Expansion
New York, NY, August 10, 2023 - Trump Media & Technology Group (DJT) stock experienced a significant surge of up to 12% at the market open on Wednesday. This positive market reaction follows the company's announcement of plans to expand into financial services.
DJT plans to allocate up to $250 million towards this expansion, which will include cryptocurrency funds, customized exchange-traded funds, and other investment vehicles. This rollout will operate under the brand name Truth.Fi. Charles Schwab will serve as the custodian for these investments and provide broader advisory services.
Trump Media, which owns the social media platform Truth Social and the video streaming platform Truth+, has a market capitalization of approximately $7.2 billion. President Trump holds a 53% stake in DJT, making his investment worth an estimated $3.8 billion.
The company's latest move comes as Truth Social continues to challenge established players in the social media landscape. However, the company's financial performance has raised concerns. In its third quarter results released in November 2022, DJT reported a net loss of $19.25 million.
Despite these concerns, DJT stock has gained a modest 5% over the past six months, and shares closed at just under $36 on November 6, 2022.