How to Buy TMTG IPO Stock

TMTG is NOT currently a public stock.

After numerous problems and social media bans for former President Donald Trump, you might have thought he’d never pop up on a social media feed again. However, it looks as though he will be back because his company, Trump Media and Technology Group, is set to launch its own social media platform. 

The new media venture, Truth Social, a social media app hoping to rival the biggest firms in the industry, launched on Feb. 21, 2023. Marketed as an alternative to other platforms such as Twitter with an eye on an initial public offering for its parent company.

How to Buy Trump Media and Technology Group Stock (When public)

Trump’s new platform is currently not listed on a stock exchange as it has not completed the IPO process. However, there were talks of a special purpose acquisition company (SPAC) deal between Digital World Acquisition Corp. (NASDAQ: DWAC) and Trump Media and Technology Group. 

Many investors looked at purchasing shares in the SPAC as a way of investing in Trump Media and Technology Group. Below are steps to purchasing SPAC shares through a brokerage. The SPAC is still active in the eyes of the Securities and Exchange Commission, but as of October 2023, the corporation planned to return over $500 million raised for the deal without completing the merger or going public and with many investors withdrawing their commitments. An estimated IPO price was not available in December 2023.

Step 1: Pick a brokerage.

A broker acts as the intermediary between you and the stock exchange. The customer can place an order to purchase a specific stock, and the broker will carry out this service. For example, if you decide to buy shares in DWAC, then you instruct your broker to buy the number of shares you request.

The broker may charge a fee in return, so research the costs involved in the transaction. Ensure that the broker offers DWAC shares as they may not be available with every broker.

Step 2: Decide how many shares you want.

Next, fund your account. The amount of risk you want to take will determine the percentage of your account attributed to DWAC shares. 

Step 3: Choose your order type.

Although you can choose from several types of orders for IPO stock, the two most common are market orders and limit orders.

Market orders let you acquire shares at the current market price. Market orders mean that your order will likely be filled by the market right away. 

Limit orders mean that the price you buy the stock at is decided by you. However, your order might not be filled.

Step 4: Execute your trade. 

After you’ve opened the trade ticket and completed the required fields, the last thing to do is click buy. Once completed, you can monitor your position and portfolio by using the app or website.

Where to Buy Trump Media and Technology Group Stock

In February 2022, Trump Media and Technology Group shares, projected to eventually trade on the Nasdaq exchange under the ticker symbol TMTG, are not available yet. However, buying shares in DWAC, the SPAC company that TMTG is expected to merge with, could provide a way to potentially invest in the company. You can find brokers that offer DWAC below. 

Trump Media and Technology Stock History & Value

Trump Media and Technology Group is in the early stages of its life span and is not yet listed on the stock exchange. However, when the potential SPAC deal was announced, DWAC shares gained almost 20%.

Since the main point of participating in a pre-merger-announcement SPAC is that no one knows what the eventual business combination will be and the share price will be low, the announcement led to a U.S. Securities and Exchange Commission (SEC) investigation. Senator Elizabeth Warren asked the SEC to investigate the planned merger for potential violations of securities law. CNBC cited a letter from Warren to SEC Chairman Garry Gensler that read DWAC “may have committed securities violations by holding private and undisclosed discussions about the merger as early as May 2021, while omitting this information in the filing and other public statements.”

The Trump social media app announcement came over a year after the former president’s indefinite suspension from Facebook and ban from Twitter Inc. (NYSE: TWTR) for allegations of encouraging the Capitol riots in January 2021.

The Truth Social app is said to be the first of several markets the company will attempt to expand into. Even without entering the IPO market, the platform can expand as it likes. Other services include a subscription video-on-demand service called TMTG+ that will include entertainment, news and podcasts. Finally, according to its website, the company wants to launch a podcast network.

TMTG: What Analysts Are Saying

With a brand new company entering a fiercely competitive market, it may be intriguing to read what analysts' views on the company may be. You can see both sides of the bullish and bearish divide below before the IPO filings and process are complete.

Bear Case

Analyst comments on TMTG and DWAC are limited. However, in an article from John Rekenthaler at Morningstar titled “Want to Lose Money? Buy the Trump- Linked SPAC,” Rekenthaler states the odds are stacked against potential shareholders because private investment in public equity (PIPE) investors received significantly more favorable terms than average investors. In addition, he said that the acquisition target is a shell that brings no assets to the bargain. 

The article concluded with Rekenthaler stating, “Digital World shares might trade above today’s price. That wouldn’t surprise me. But I expect its price to be lower, probably substantially so, by one year from this time.”

Bull Case

In contrast, Joseph Nograles from InvestorPlace has a bullish stance on the stock and SPAC merger. In an article, Nograles suggests DWAC is a long-term buy. The writer believes Trump's influence within his conservative base will be essential to helping him build a successful platform. Furthermore, Nograles said it will also enable him to monetize the platform better than competitors.

In conclusion, Nograles said that over the long term, DWAC stock holds plenty of promise and investors should be patient.

Pros and Cons of TMTG

Pros:

Potential Growth: After announcing the possible SPAC deal, investors grew confident, causing a rise in DWAC shares. Based on DWAC’s stock price in October — after the Truth Social app’s listing on the app store — TMTG was valued at $5.3 billion.

Investment: The company has seen major backing from private investors, raising an additional $1 billion in December 2022.

Cons:

Market: The platform may currently be about to enter a market dominated by a few substantial tech firms. In that case, rivals Twitter, Facebook, Instagram and others could post a market-share challenge, necessitating reinforcement and growth in Trump’s consumer base to bolster this SPAC.

SPAC Deal: Although it has declined to comment on its plan of action, SEC Chairman Gary Gensler was asked to investigate the planned merger and issuing company, which is uncommon during the underwriting process.

Is TMTG a Buy, Sell or Hold?

With the stock not yet listed on the market, it is difficult to make a future judgment on the outcome. However, the company has significant backing to help rival some of the largest firms, and the Trump base has proven to have staying power and continued influence. With so little known about the stock, it's challenging to make an assumption on whether a buy or sell will be best for investors. Check the Benzinga IPO calendar to learn if the stock is ever listed.

Frequently Asked Questions