If you’re looking for a volatile stock to invest in this year, Trump Media and Technology Group, trading under symbol DJT, might fit the bill. The company went public via a special purpose acquisition group merger on March 26, 2024, and provides access to Truth Social, the social media company founded by former President Donald Trump.
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The stock shot up 41% right after it began trading, but it’s already given back all of those gains and more. As a company tied to one of the two candidates in the November presidential election, it’s likely that the stock will continue to be volatile throughout 2024. But is the company a good bet if Trump loses the election? Here’s a look at the financials of Trump Media and Technology Group, how the stock has been trading and the viability of the company as a long-term investment.
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Trump Media and Technology Group is the parent company of Truth Social. Trump created the social media company after being banned from both X (formerly Twitter) and Facebook in the wake of the Jan. 6 attacks on the Capitol, as reported by the Associated Press. Trump holds approximately 57% of the outstanding shares of Truth Social, making him the majority shareholder.
After spiking over 40% immediately after it began trading, DJT has been in a major downtrend. On April 10, 2024, the stock closed at $34.26, down 48% from its closing high of $66 on March 27.
The stock is volatile for a number of reasons. First, as it’s closely tied to Donald Trump, there is a lot of emotion attached to the stock. Part of the reason DJT soared on its first day of trading was no doubt in part due to the excitement among the former president’s supporters. But the hard numbers behind the company play a major role as well.
Trump Media and Technology Group generated $4.1 million in revenue in 2023 but lost $58.2 million — and those losses are likely to continue. Even the company’s CEO, Devin Nunes, said that for the foreseeable future, the company will continue to operate at a loss, and it’s impossible to predict when or even if the company will ever become profitable. The company’s own auditor said that DJT’s losses raise “substantial concern” about whether it can even continue as a going concern. With these types of financial troubles hanging over the stock, it will likely continue to remain volatile.
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