The most recent instance when Donald Trump launched a business under the ticker symbol ‘DJT’ resulted in bankruptcy.

As of Tuesday, a new player has entered the Nasdaq arena: Trump Media & Technology Group, trading under the stock ticker DJT.

The choice of ‘DJT’ as the ticker symbol is a clear nod to Donald John Trump, emphasizing the company’s primary objective — providing a platform (along with a significant financial boost) to the presumed Republican nominee. The flagship product of the company, Truth Social, emerged as Trump’s response to his ban from most mainstream social media platforms following the events of January 6, 2021, at the US Capitol.

However, Truth Social hasn’t achieved blockbuster success, raising doubts about the company’s revenue prospects.

This scenario echoes a similar situation from the past.

While Trump Media is a new venture, its stock ticker mirrors that of Trump’s previous publicly traded company. In 1995, Trump Hotels and Casino Resorts went public under the ‘DJT’ ticker, with disappointing results for investors. The venture never turned profitable and eventually filed for bankruptcy in 2004, resulting in substantial losses for shareholders.

Despite the company’s financial struggles, Trump himself profited handsomely during his tenure as CEO through various means, including salary, bonuses, options, consulting contracts, and licensing deals. Following the bankruptcy, Trump continued to earn millions from the restructured company, now named Trump Entertainment Resorts, which traded under the ticker ‘TRMP.’

However, Trump Entertainment Resorts also faced financial difficulties, filing for bankruptcy again in 2009 after accruing significant losses.

Despite this history, the newly formed DJT has seen a surge in market enthusiasm following its merger with Digital World Acquisition Corp. The stock price of DWAC skyrocketed by 40% on Monday and has soared by over 170% in the past six months.

Nonetheless, an analysis of the company’s fundamentals suggests that its stock is vastly overvalued. Trump Media reported only $3.4 million in revenue during the first nine months of the previous year, indicating that the current stock price may be inflated beyond reasonable levels.

Additionally, Truth Social’s user base is shrinking, further dampening the company’s prospects.

At present, Trump’s stake in the company is valued at approximately $4 billion. While there may be restrictions on selling this stock in the initial months following trading commencement, potential workarounds could arise, especially considering Trump’s reduced civil fraud bond obligation.