Trump Media & Technology Group made its debut on the Nasdaq exchange in late March under the ticker symbol “DJT.” Since then, the company’s stock has experienced significant fluctuations. Initially, the stock surged to a high of $79.38, valuing the company at over $9 billion. However, the stock has since dropped by 54%, with Trump Media’s market capitalization falling to less than $5 billion.
The main asset of Trump Media is its social media service Truth Social, which generated $4.1 million in revenue in 2023. Despite this revenue, Trump Media has reported mounting losses and its accountant has expressed doubts about its ability to continue as a going concern. The company has primarily attracted attention from supporters of former President Donald Trump and retail investors, rather than big institutional investors.
One reason for the volatility of Trump Media’s stock is that it has become a meme stock due to the Trump news factor. Ben Emons, a senior portfolio manager, noted that “DJT” has makings of a meme stock due to its unique connection with former President Donald Trump and his followers. In fact, Truth Social was created specifically for his supporters and he heavily promoted it on his social media channels before stepping down as president in January 2021.
Despite these challenges, Trump Media remains optimistic about expanding and enhancing Truth Social as it navigates uncertainties in the stock market and works to establish itself as a player in the social media industry. A spokesperson for the company mentioned that they see numerous possibilities for growth and expansion with their platform
