NEW YORK: Shares of Donald Trump’s social media company rose about 16 percent in the first day of trading on the Nasdaq, boosting the value of Trump’s large stake in the company as well as the smaller holdings of fans who purchased shares as a show of support for the former president.
Trump Media & Technology Group Corp. merged Monday with a blank-check company called Digital World Acquisition Corp. Trump Media, which runs the social media platform Truth Social, has now taken Digital World’s place on the Nasdaq stock exchange.
Shares closed at $57.99, up 16.1 percent, giving the company a market value of $7.85 billion. At one point the stock was up about 59 percent. Trump holds a nearly 60 percent ownership stake in the company, now worth about $4.6 billion.
Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors. Those shareholders helped the stock of Digital World more than double this year in anticipation of the merger going through.
Truth Social launched in February 2022, one year after Trump was banned from major social platforms including Facebook and X, formerly Twitter, following the Jan. 6 insurrection at the US Capitol. He’s since been reinstated to both but has stuck with Truth Social.
On Truth Social Tuesday, users were posting about being shareholders or seeking tips on how to buy shares.
One user urged conservatives to “get behind the DJT stock and sent it over $100 per share” to “drive the liberals insane!” Another declared: “Get yourself a piece of #DJT stock if your a true MAGA supporter.”
A day earlier, Trump Media CEO Devin Nunes, a former House Republican, said, “As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors.”
Despite the enthusiasm, investors could experience a bumpy ride. For one, they’re betting on a company with uncertain prospects of turning a profit. Trump Media lost $49 million in the first nine months of last year, when it brought in just $3.4 million in revenue and had to pay $37.7 million in interest expenses.
In a recent regulatory filing, the company cited the high rate of failure for new social media platforms, as well as its expectation that its operations will lose “for the foreseeable future” as risks for investors.
Research firm Similarweb estimates that Truth Social had roughly 5 million active mobile and web users in February. That’s far below TikTok’s more than 2 billion and Facebook’s 3 billion — but still higher than other “alt-tech” rivals like Parler.
However, Trump Media has said it doesn’t keep track of some numbers that rivals use as key measures of their performance, such as average revenue per user or active user accounts. It says it wants to focus on the long-term instead of “short-term decision-making.”
For that long term, though, skeptics see struggles ahead for a company that’s estimated to have far fewer users than rivals in a business where gaining a critical mass is key.
“I think there is a possibility of, sooner or later, the stock price falling by 95 percent,” said Jay Ritter, a professor and expert on initial public offerings of stock at the University of Florida’s Warrington College of Business.
Brian Dunn, director of the Institute for Compensation Studies at Cornell University, compared the fervor for Trump Media shares to the meme stock craze that boosted shares of companies such as GameStop and AMC Entertainment to exorbitant heights in 2021.
“Like any meme stock or fad, as long as there’s a greater fool to buy you out for what you paid for it, than you can continue to prosper,” Dunn said, warning that small investors “could end up holding the bag when the music stops.”
On Monday, Trump told reporters that “Truth Social is doing very well. It’s hot as a pistol and doing great.” On Tuesday, he posted “I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!,” on the platform.
The company, which is based in Florida, said in a recent regulatory filing that it “is highly dependent on the popularity and presence of President Trump.” Trump Media has acknowledged that there are risks associated with Trump’s outsized influence.
If the former president were to limit or discontinue his relationship with the company for any reason, including due to his campaign to regain the presidency, the company “would be significantly disadvantaged,” it said in a filing ahead of the merger with Digital World.
Acknowledging Trump’s involvement in numerous legal proceedings, the company noted that “an adverse outcome in one or more” of the cases could negatively affect Trump Media and Truth Social.
Another risk, the company said, was that as a controlling stockholder, Trump would be entitled to vote his shares in his own interest, which may not always be in the interests of all the shareholders generally.
Trump’s social media company gains in its first day of trading on Nasdaq
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Trump’s social media company gains in its first day of trading on Nasdaq
- Many of those investing in Trump Media are small-time investors either trying to support Trump or aiming to cash in on the mania, instead of big institutional and professional investors
Indonesia’s Supreme Court reverses acquittal of former official in slavery case
- A police investigation found 665 people had been held in cells on his property since 2010
JAKARTA: Indonesia’s Supreme Court jailed a former government official accused of human trafficking for four years, reversing a lower court decision to acquit him after people were found in cages in his palm oil plantation.
Condemned internationally and at home, the senior official in the provincial government in North Sumatra, Terbit Rencana Perangin-angin, had been accused of human trafficking, torture, forced labor, and slavery.
Prosecutors launched an appeal after a lower court acquitted him of the charges in July.
Indonesia’s Supreme Court said he would serve four years in jail, without specifying reasons, in a ruling dated Nov. 15 and seen on the court’s website on Tuesday.
The Supreme Court and prosecutors did not immediately respond to requests for comment. Reuters has sought comment from Terbit’s lawyer.
The macabre case came to light in 2022, when a police corruption investigation into Terbit found people detained in cages on his property, drawing condemnation from rights groups.
A police investigation found 665 people had been held in cells on his property since 2010, court documents showed.
Terbit, who was jailed for nine years for corruption in 2022, had previously claimed the detained individuals were participating in a drug rehabilitation program.
Prosecutors said they had been tortured and forced to work on his plantation. Six had died in captivity, Indonesia’s rights body found.
Four Pakistan security forces killed as ex-PM Khan supporters flood capital
ISLAMABAD: Pakistani protesters demanding the release of ex-prime minister Imran Khan on Tuesday killed four members of the nation’s security forces, the government said, as the crowds defied police and closed in on the capital’s center.
More than ten thousand protesters armed with sticks and slingshots took on police in central Islamabad on Tuesday afternoon, AFP journalists saw, less than three kilometers (two miles) from the government enclave they aim to occupy.
Khan was barred from standing in February elections that were marred by allegations of rigging, sidelined by dozens of legal cases that he claims were confected to prevent his comeback.
But his Pakistan Tehreek-e-Insaf (PTI) party has defied a government crackdown with regular rallies. Tuesday’s is the largest in the capital since Khan was jailed in August 2023.
Interior Minister Mohsin Naqvi said “miscreants” involved in the march had killed four members of the paramilitary Rangers force on a city highway leading toward the government sector.
Prime Minister Shehbaz Sharif said the men had been “run over by a vehicle.”
“These disruptive elements do not seek revolution but bloodshed,” he said in a statement. “This is not a peaceful protest, it is extremism.”
The government said Monday that one police officer had also been killed and nine more were critically wounded by demonstrators who set out toward Islamabad on Sunday.
The capital has been locked down since late Saturday, with mobile Internet sporadically cut and more than 20,000 police flooding the streets, many armed with riot shields and batons.
The government has accused protesters of attempting to derail a state visit by Belarusian President Alexander Lukashenko, who arrived for a three-day visit on Monday.
Last week, the Islamabad city administration announced a two-month ban on public gatherings.
But PTI convoys traveled from their power base in northwestern Khyber Pakhtunkhwa province and the most populous province of Punjab, hauling aside roadblocks of stacked shipping containers.
“We are deeply frustrated with the government, they do not know how to function,” 56-year-old protester Kalat Khan told AFP on Monday. “The treatment we are receiving is unjust and cruel.”
The government cited “security concerns” for the mobile Internet outages, while Islamabad’s schools and universities were also ordered shut on Monday and Tuesday.
“Those who will come here will be arrested,” Interior Minister Naqvi told reporters late Monday at D-Chowk, the public square outside Islamabad’s government buildings that PTI aims to occupy.
PTI’s chief demand is the release of Khan, the 72-year-old charismatic former cricket star who served as premier from 2018 to 2022 and is the lodestar of their party.
They are also protesting alleged tampering in the February polls and a recent government-backed constitutional amendment giving it more power over the courts, where Khan is tangled in dozens of cases.
Sharif’s government has come under increasing criticism for deploying heavy-handed measures to quash PTI’s protests.
“It speaks of a siege mentality on the part of the government and establishment — a state in which they see themselves in constant danger and fearful all the time of being overwhelmed by opponents,” read one opinion piece in the English-language Dawn newspaper published Monday.
“This urges them to take strong-arm measures, not occasionally but incessantly.”
The Human Rights Commission of Pakistan said “blocking access to the capital, with motorway and highway closures across Punjab and Khyber Pakhtunkhwa, has effectively penalized ordinary citizens.”
The US State Department appealed for protesters to refrain from violence, while also urging authorities to “respect human rights and fundamental freedoms and to ensure respect for Pakistan’s laws and constitution as they work to maintain law and order.”
Khan was ousted by a no-confidence vote after falling out with the kingmaking military establishment, which analysts say engineers the rise and fall of Pakistan’s politicians.
But as opposition leader, he led an unprecedented campaign of defiance, with PTI street protests boiling over into unrest that the government cited as the reason for its crackdown.
PTI won more seats than any other party in this year’s election but a coalition of parties considered more pliable to military influence shut them out of power.
Russia’s Medvedev warns West over discussing nuclear weapons for Ukraine
MOSCOW: Senior Russian security official Dmitry Medvedev said on Tuesday that if the West supplied nuclear weapons to Ukraine then Moscow could consider such a transfer to be tantamount to an attack on Russia, providing grounds for a nuclear response.
The New York Times reported last week that some unidentified Western officials had suggested that US President Joe Biden could give Ukraine nuclear weapons, though there were fears such a step would have serious implications.
“American politicians and journalists are seriously discussing the consequences of the transfer of nuclear weapons to Kyiv,” Medvedev, who served as Russia’s president from 2008 to 2012, said on Telegram.
Medvedev said that even the threat of such a transfer of nuclear weapons could be considered as preparation for a nuclear war against Russia.
“The actual transfer of such weapons can be equated to the fait accompli of an attack on our country,” under Russia’s newly updated nuclear doctrine, he said.
China sends naval, air forces to shadow US plane over Taiwan Strait
- The US Navy’s 7th fleet said a P-8A Poseidon maritime patrol aircraft had flown through the strait
BEIJING: China’s military said on Tuesday it deployed naval and air forces to monitor and warn a US Navy patrol aircraft that flew through the sensitive Taiwan Strait, denouncing the United States for trying to “mislead” the international community.
Around once a month, US military ships or aircraft pass through or above the waterway that separates democratically governed Taiwan from China — missions that always anger Beijing.
China claims sovereignty over Taiwan and says it has jurisdiction over the strait. Taiwan and the United States dispute that, saying the strait is an international waterway.
The US Navy’s 7th fleet said a P-8A Poseidon maritime patrol aircraft had flown through the strait “in international airspace,” adding that the flight demonstrated the United States’ commitment to a free and open Indo-Pacific.
“By operating within the Taiwan Strait in accordance with international law, the United States upholds the navigational rights and freedoms of all nations,” it said in a statement.
China’s military criticized the flight as “public hype,” adding that it monitored the US aircraft throughout its transit and “effectively” responded to the situation.
“The relevant remarks by the US distort legal principles, confuse public opinion and mislead international perceptions,” the military’s Eastern Theatre Command said in a statement.
“We urge the US side to stop distorting and hyping up and jointly safeguard regional peace and stability.”
In April, China’s military said it sent fighter jets to monitor and warn a US Navy Poseidon in the Taiwan Strait, a mission that took place just hours after a call between the Chinese and US defense chiefs. (Reporting by Beijing Newsroom; Additional reporting and writing by Ben Blanchard in Taipei; Editing by Edwina Gibbs)
Ukraine says Russia launched ‘record’ 188 drones overnight
KYIV: Russia staged a record number of drone attacks overnight over Ukraine, damaging buildings and “critical infrastructure” in several regions, the air force said Tuesday.
“During the night attack, the enemy launched a record number of Shahed strike unmanned aerial vehicles and unidentified drones,” the air force said, referring to Iranian-designed drones and putting the figure at 188.
