Trump Media & Technology Group Corp. (NASDAQ: DJT), gained about 15% on Tuesday amid expectations Donald Trump would be reelected President of the United States.
Investors are confident that the Florida company, Truth Social Inc. that operates and owns Trump’s second presidency will be successful.
Why? Why? Because Trump may announce policies in favor of DJT, or because more people might sign up to Truth Social at the Office.
About 57% of the DJT is owned by Republican candidate for president. The stock of Trump Media has tripled in value since the 23 rd, but it is still about 40% below its high for this year.
Trump Media shares will continue to lose value over time
DJT shares lost $12 over the past few days, as odds improved that Kamala will win the US election in 2024.
Recent polls show that the two candidates have a close race, each with support of about 49 percent.
Jay Woods says that while Trump Media’s stock might rise if the Republican nominee wins the White House in this month, its long-term ability to maintain those gains is still in question.
We’re selling this now like GameStop is on steroids. Kudos for those making money by trading this. The metrics are not sustainable over time, said the Freedom Capital Markets chief global strategist in an interview with CNBC today.
Wall Street analysts may not be covering Trump Media & Technology Group due to its unusual volatility and confused metrics. It also doesn’t offer a dividend to appeal to income investors.
WallStreetBets has shown that DJT is trending upwards as we approach election day. This may indicate retail traders warming up for a potential short squeeze.
DJT loses users and advertising dollars
Jay Woods believes that Trump Media is a good “sell”, even if Donald Trump won the US election in 2024. This is because both the number of monthly active users and the amount spent on advertising have decreased recently.
A second red flag was that both co-founders had sold their DJT shares “the moment the window opened”. Donald Trump tweets, as he still has 90,000,000 followers on Twitter compared to only 7,000,000 on Truth Social. This is not good news for Trump Media either.
Trump Media & Technology Group Corp. reported a net loss of over 16 million dollars for the second quarter in August. In Q2, the Nasdaq listed company saw revenue drop by 30 percent to approximately $0.836 millions.
DJT has an impressive market capitalization of $8.0 billion. This is a high number considering the modest revenues.
How might this post Trump Media react to a Trump win? This post may change as new information becomes available
