Donald Trump Jr. rang the New York Stock Exchange bell with patriotic fanfare. Two days later, his company’s stock was already tanking.
Donald Trump Jr.’s latest business gamble is GrabAGun, a pro-gun e-commerce site that brands itself as “the Amazon of Guns.” The venture hit a major snag just days after going public on the New York Stock Exchange on July 16. What was supposed to be a celebratory moment for the former president’s eldest son ended in a spectacular market flop, with shares plunging more than 30% over two days of trading.
Another Trump Venture
GrabAGun, which sells everything from handguns to hunting rifles online, entered public markets under the ticker symbol “PEW,” a tongue-in-cheek nod to gunfire. Trump Jr. and executives from Colombier Acquisition Corp. II, a SPAC (Special Purpose Acquisition Company), rang the NYSE opening bell as Trump supporters chanted “USA! USA!” in a highly publicized media moment.
“To be able to come back to the New York Stock Exchange and actually take a gun company public feels like such a vindication of all the insanity, all of the ‘woke’ nonsense that we’ve been watching and facing for the last decade in America,” Trump Jr. told Fox Business just before the public launch.
But the markets were far less enthusiastic.
Shares of GrabAGun debuted at $21.40 before quickly sliding, closing the day down 24% at $13.20. On July 17, they dropped even further-trading around $10.20, and showing little sign of recovery. Despite Trump Jr.’s 300,000-share stake — worth roughly $3 million at press time — the company’s market debut has been widely regarded as a failure. Today, July 22, its price was a mere $8.52 by early afternoon.
Financial analysts say the flop was entirely predictable.
GrabAGun went public through a merger with Colombier Acquisition Corp. II, a SPAC created specifically to fast-track a company’s public offering without the scrutiny of a traditional IPO.
SPACs are shell companies created solely to raise money through a IPO, with the goal of acquiring or merging with an existing business. SPACs have no operations of their own and exist purely as investment vehicles, according to Investopedia. After enjoying popularity before the 2007–2009 financial crisis, SPACs faded from the spotlight for several years. However, they made a major comeback in the early 2020s, with a surge in IPO activity and high-profile mergers, before interest in them slowed again by the mid-2020s.
SPACs regained popularity during the pandemic but have since earned a reputation for poor performance and short-lived hype. Many companies that took the SPAC route — like BuzzFeed, Virgin Galactic, and 23andMe — have suffered similar fate: brief excitement followed by long-term investor disappointment, Fast Company reported.
GrabAGun raised $179 million generated through its SPAC merger, according to a statement. But experts wonder if the company is sustainable, much like many of the other companies that have popped up since his father was re-elected to the White House.
Under the Trump name there have been Bibles, watches, fragrances, and phones put up for sale for Trump supports to consume. Now the question is, will GrabAGun appeal to them?
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