Trump Media (DJT -7.22%) stock is posting big gains in Tuesday's trading. The company's share price was up 5.9% as of 2:30 p.m. ET and had been up as much as 14.1% earlier in the daily session.
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Trump Media stock surges on ETF news
Trump Media is getting a valuation boost following big news about the company's push into the financial products space. The company announced that it will be partnering with Crypto.com to launch exchange-traded funds (ETFs).
Last month, Trump Media announced the launch of Truth.Fi -- its new finance brand focused on offering ETFs and other financial products. With the company's announcement of its partnership with Crypto.com today, it's become clear that these financial product launches are on the near horizon.
Trump Media and Crypto.com are teaming up to offer new ETFs built around cryptocurrencies and stocks with a "Made in America" focus. The first of these financial products are expected to launch this year and will be sold under the Truth.Fi brand on the Crypto.com platform. Investors seem to like the news.
What's next for Trump Media?
The launch of Truth.Fi and push into the financial products industry could represent a dramatic change of course for Trump Media. The company's business has mostly revolved around its social media platform Truth Social up to this point, but it looks like that may be changing. That could be a good thing.
With the platform sporting a relatively small user base and monetizing at weak levels, Truth Social has not been a big success so far. Despite weak performance for the platform, Trump Media has been able to sustain a highly growth-dependent valuation. It's not clear whether the Truth.Fi unit will wind up being successful for the company, but it at least provides another potential growth driver.
