Stks_Not_Toys
5 일 전
News: Data: Yahoo Finance; Chart: Axios Visuals
A small financial services company headquartered in Trump Tower has seen its stock rise more than 300% this week and more than 1,200% in 2025, after a recent investment by Donald Trump Jr. and Eric Trump.
Why it matters: It's a huge gain in a short time for a company that in the last five years pivoted from sciences to finance, and now has AI ambitions, all while losing tens of millions of dollars.
The two Trump brothers also joined Dominari Holdings's board of advisers, the company said Tuesday, and they invested in a recent stock offering.
The case is another example of the Trump family's personal interests intersecting with President Trump's policy priorities (in this case, building data centers and expanding American AI dominance).
By the numbers: Dominari shares rose from 98 cents on Dec. 31 to $13 as of Thursday's close.
The stock sold off Friday morning, losing a quarter of its value in early trading, but is still worth orders of magnitude more than it was just days ago.
State of play: The Trumps will help the company focus on investments in the AI and data center spaces, per Kyle Wool, CEO of Dominari's securities business. He's a self-described friend of the Trump brothers.
At the same, the company announced a special cash dividend to be paid out to investors later this month.
The stock and warrant offering was priced at $3.47 per share, meaning the investors have already made a handsome paper profit.
The intrigue: The stock offering was dilutive, increasing the company's potential shares outstanding by about 50%.
Dilutive transactions don't typically cause a stock to rise — much less more than triple in three trading sessions.
Between the lines: As the Wall Street Journal and others have reported, the partnership raises questions about the optics of a president's family having a financial stake in a company benefitting from his economic policies.
Zoom out: As Dominari has pivoted its business model, the company's losses have also piled up.
According to its most recent quarterly report, it lost $15.8 million in the first nine months of 2024 on $11.6 million in revenue.
That followed losses of nearly $23 million in 2023 and more than $22 million in 2022.
What they're saying: "They're very great businessmen, and I think they both have an interest in the AI and data center space. They could be very helpful giving me guidance as advisers," Wool told Bloomberg.
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LowFloatLopes
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