Trump Media & Technology Group (DJT) took a sharp tumble on Thursday, sliding nearly 23% after riding a wave of enthusiasm when Donald Trump clinched his victory over Kamala Harris. The dip doesn’t change the bigger picture: DJT, the stock behind Trump’s platform Truth Social, has been moving on the sheer excitement of Trump’s return to the White House. It’s no surprise that the stock, like anything with Trump’s name on it, attracts both die-hard supporters and the kind of speculators who trade on momentary fluctuations.
Over the past week, DJT’s performance has been a rollercoaster. The stock dropped 21% in five days, but don’t forget it’s still up 50% in the past month as Trump’s momentum built. According to Matthew Tuttle, CEO of Tuttle Capital Management, this action was typical of a “buy the rumor, sell the fact” trading strategy. He anticipated the post-victory dip, adding, “The day after him winning, you’d see this come down.” But long-term investors and Trump fans alike know better than to get swayed by a temporary dip.
Steve Sosnick of Interactive Brokers hit the nail on the head when he described DJT as having a “meme-stock life of its own.” Anyone familiar with the stock market’s recent obsession with meme stocks will understand — DJT’s movements aren’t always grounded in the company’s fundamentals. Instead, it’s a stock that trades on the strength of Trump’s vision for an alternative media and tech platform outside the Big Tech bubble.
Yes, Trump Media reported a net loss of $19.25 million for Q3, a slight improvement from last year’s $26.03 million loss. And yes, revenue fell a bit to $1.01 million for the quarter. But no one supporting Trump is exactly looking to mainstream financials for validation. Truth Social is in its own category, much like the way Trump shook up the political scene.
Let’s be honest, Truth Social was never about outpacing Facebook or Twitter on earnings reports. It’s about creating a space free from Silicon Valley’s grip, where conservatives won’t be silenced. Trump maintains around a 60% stake in DJT, with a current share price at $31 giving his interest an estimated worth of $4 billion — not too shabby for a platform that critics said would never get off the ground.
While the usual suspects might sneer, Trump’s win sends a loud message: people want their voice back, and they’re willing to put their money where their mouth is. So, yes, DJT might swing up and down, but it’s got Trump’s backing and a mission rooted in conservative values. That’s a foundation you can bank on.
Comments are closed.