The company, which operates Truth Social, merged with Digital World Acquisition Corp. and replaced it on the exchange.

Trump holds a 60% stake in the company, now worth approximately $4.6 billion.

The surge in shares was driven by small-time investors looking to support Trump or profit from the hype, rather than institutional investors.

The stock reached a high of 59% increase before closing at $57.99, giving the company a market value of $7.85 billion.

Digital World's stock price more than doubled this year due to anticipation of a merger with Trump Media, the parent company of Truth Social.

Trump launched Truth Social in February 2022 after being banned from major social media platforms following the Capitol insurrection.

Users of Truth Social are encouraging each other to buy DJT stock as a show of support for Trump and to drive up the price.

Trump Media's CEO, Devin Nunes, has stated that as a public company, they will work to reclaim the internet from Big Tech censors.

Trump Media, the social media company founded by former President Donald Trump, has attracted investor interest but comes with risks.

The company lost $49 million in the first nine months of last year, with revenue of $3.4 million and $37.7 million in interest expenses.

Trump Media cited the high failure rate for new social media platforms and its expectation of operating at a loss "for the foreseeable future" as risks for investors.

The company had 5 million active users in February, lower than TikTok and Facebook but higher than some rivals.

Trump Media does not disclose key performance metrics like average revenue per user or active user accounts.

The text discusses concerns about the long-term prospects of Trump Media & Technology Group (TMTG), which aims to focus on long-term growth instead of short-term decision-making.

However, skeptics question TMTG's ability to succeed due to its smaller user base compared to rivals in the tech industry.

Professor Jay Ritter from the University of Florida believes there is a risk of a significant stock price drop for TMTG, while Brian Dunn from Cornell University compares the hype around TMTG to meme stock fads, warning that small investors could lose money when the market eventually corrects.

Trump has publicly expressed his support for Truth Social, a social media platform owned by Trump Media, based in Florida.

The company's success is heavily dependent on Trump's presence.

However, there are risks associated with Trump's involvement, including potential legal outcomes that could negatively impact the company.

If Trump were to discontinue his relationship with Truth Social, the company would be significantly disadvantaged.

The text mentions that there is a risk for the company if Donald Trump, as a controlling stockholder, votes his shares based on his own interests rather than the interests of all shareholders.