Donald Trump Jr.-backed GrabAGun stock tumbles on NYSE debut

GrabAGun, an online firearm marketplace backed by Donald Trump Jr., made a rocky start to its public trading on the NYSE, with shares plummeting 24% before recovering to close down 12%. The company debuted after a $179 million SPAC merger with Colombier Acquisition Corp. II. GrabAGun's CEO said the company aims to attract younger buyers who value their Second Amendment rights and challenge advertisers and social media platforms that avoid gun retailers.

GrabAGun Digital Holdings Inc. (NYSE: PEW), an online firearm marketplace, made a tumultuous debut on the New York Stock Exchange (NYSE) on July 16, 2025. The company's shares plummeted 24% in their first day of trading, dropping from an opening price of around $21 to a low of $16.30 before recovering to close down 12% at $17.33. The stock's dramatic performance was closely watched by investors and financial professionals alike.

The Texas-based company, which specializes in firearms, ammunition, and outdoor sporting gear, listed through a $179 million SPAC merger with Colombier Acquisition Corp. II (CLBR). The merger raised over $179 million in gross proceeds and netted approximately $119 million after expenses. Despite the flashy launch featuring Donald Trump Jr. ringing the NYSE bell, the stock struggled to maintain its early momentum.

Several factors contributed to GrabAGun's sharp decline. The stock opened in the low $20s, but profit-taking, concerns over the company's high leverage, and general SPAC market skepticism triggered a quick selloff. The company's high debt-to-asset ratio of 91% raised eyebrows among investors, as did the broader market volatility and political risks associated with the gun industry [1].

GrabAGun's latest financials, as of September 30, 2024, show a steady revenue growth of 9.2% year-over-year, with trailing 12-month revenue of $99.5 million and net income of $5 million. However, the high debt load and the company's dependence on political support from figures like Donald Trump Jr. pose significant risks for long-term investors.

In the short term, market watchers are closely eyeing trading volume, institutional entries, and warrant activity (PEWW) for signs of support or resistance. While the stock might find support in the $15–$16 range, resistance is likely near the $22–$25 band. For long-term investors, GrabAGun's high debt and political exposure mean careful analysis is critical.

In conclusion, GrabAGun's rocky NYSE debut highlights the challenges faced by companies with high debt loads and political sensitivities. Despite its promising tech-driven platform and strong brand partnerships, the company's high risk profile makes it a speculative play best suited for investors with a high risk tolerance.

References:
[1] https://m.economictimes.com/news/international/us/grabagun-digital-holdings-inc-pew-crashes-19-on-nyse-debut-despite-donald-trump-jr-hype-what-went-wrong-and-is-there-a-bounce-ahead/articleshow/122578321.cms