DJT Stock Surges. Trump Media Looks to Break Streak of Losses.

Trump Media & Technology Group was rising early Wednesday, recouping some recent losses after the Truth Social parent disclosed a plan to launch a streaming network.

Trump Media shares jumped 12% to $25.63 in Wednesday trading. That puts the stock on pace for its largest one-day increase since March 27, the day after it went public through a merger with a special-purpose acquisition company.

What’s prompting the gain in the highly volatile stock is hard to gauge. The stock is only regaining part of its 14% slump on Tuesday, the same day that the Truth Social owner said it was planning a new livestreaming network to be delivered via its app and eventually on TV.

Truth Social has positioned itself as a conservative alternative to platforms such as Meta Platforms’ Facebook or social-media company Reddit but its user numbers are much smaller than its peers. Trump Media’s revenue in 2023 was $4.1 million, and the company posted a net loss of $58.2 million.

At Tuesday’s closing price, former U.S. President Donald Trump’s 57% stake in the company was valued at around $1.8 billion. He is still in line to receive an additional 36 million earnout shares in the company. The incentive requires its volume-weighted average price to remain above a series of levels. The stock must stay above the $17.50 level in 20 out of any 30 trading days following its merger on March 25 during a three-year period to receive the maximum award.

Trump is barred from selling Trump Media shares until a six-month lockup period expires. But he could seek a waiver from the company’s board, which includes one of his sons and several former members of his administration.

Trump is currently facing the first criminal trial of a former president over allegations that he falsified New York business records to influence the 2016 presidential election by paying off porn star and director Stormy Daniels, who alleged she had an affair with the former president.

Trump has denied the affair and claimed he is being prosecuted for political reasons. The trial is likely to last from six to eight weeks. Jury selection, which began Monday, is currently taking place and an initial seven jurors have been selected.

Write to Adam Clark at [email protected]