Trump company made it rock solid out of the starting blocks: – Mother of all meme stocks, says analyst.
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This is how the biggest indexes on Wall Street opened on Wednesday.
- The collective index S & P 500 is up 0.32 percent
- The technology index Nasdaq is up 0.50 percent
- The Dow Jones index is up 0.13 percent
Monday ended on the Stock Exchanges in New York. It is a truncated week at the Stock Exchange in New York due to the cancellation of the Easter holiday.
Oil prices are down a bit since midnight. At the time of writing, a barrel of North Sea oil (burnt spot) is trading for USD 85.84.
Trump stock jumps
On Friday, shareholders in the acquisition company Digital World Aquistion Corp approved a merger with former President Donald Trump’s company Trump Media, which owns the social media site Truth Social.
Trump Media & Technology Group Corp (TMTG) goes public on Tuesday. The stock was up more than 30 percent before opening, and was just over 40 percent just after opening.
The deal provides TMTG with more than $275 million in needed capital. The listing can also be positive for Trump, who is facing a number of legal and financial challenges, writes Bloomberg.
If the share price stays close to the pre-trade level, Trump’s shares could be worth around $6.5 billion, Bloomberg writes.
The shares are, however, subject to a six-month lockup period.
Can’t defy gravity
The IPO under the ticker DJT will test Trump’s ability to capture the attention of small savers and “hype” investors, who can use the stock to bet on his re-election bid, writes Bloomberg.
The company’s operations have so far struggled to generate profits, with a loss of $49 million in the first nine months of 2022. Revenue was just $3.4 million.
The analysts don’t like that.
– The underlying business basis will be important for some point. There is a limit to how long the stock can defy gravity, said Julian Klymochko, CEO of Accelerate Financial Technologies, according to Bloomberg.
– DJT is the mother of all meme shares.
The share price is up 46.55 percent.
Cocoa record
Cocoa prices have risen to record highs. One ton of cocoa costs over 10,000 dollars, according to Bloomberg.
According to CNBC, cocoa is the commodity that has risen the most in price so far this year. At the start of 2024, prices were below USD 4,200 per tonne.
The price rise comes after crops in several countries in West Africa have been poor in recent years.
The CFO of Mondelez International signaled in February that price increases are most likely going forward, while Michele Buck, CEO of Hershey, has stated that “the company is committed to pricing to cover inflation”.
