Trump media stock price today, Trump Media & Technology Group Corp (NASDAQ:DJT) stock is trading lower on Tuesday.
The recent dip in the stock of Truth Social's parent company coincides with a New York judge's ruling that Donald Trump will be sentenced on January 10, 2025, just days before his planned inauguration as president of the United States. This decision follows numerous delays in a case that resulted in Trump being found guilty of 34 felony counts related to falsifying business records, establishing a precedent for former presidents.
Despite ongoing legal challenges, the sentencing will proceed as scheduled, stemming from Trump's conviction in May 2024, according to BBC News. The case centers around a $130,000 hush money payment made during the 2016 election cycle.
New York Supreme Court Justice Juan Merchan dismissed Trump's arguments regarding presidential immunity, emphasizing their repetitive nature. He also denied Trump's request to pause the proceedings, highlighting the necessity for finality in the case. Although Trump faces an unconditional discharge—meaning no prison time, fines, or probation—the conviction will remain on his record. Trump has the option to attend the court in person or virtually.
Over the past year, Trump Media stock surged by 104%. In November, the company reported third-quarter net sales of $1.01 million, a 6% decrease year-on-year, with advertising on the Truth Social platform accounting for its total revenue. The company experienced an EPS loss of 10 cents, an improvement from a 30-cent loss previously.
Despite Trump transferring his 53% stake in the company to a revocable trust last December, the stock continued to rise. As of the last check on Tuesday, DJT stock is down 2.68%, trading at $35.21
DJT stock, the parent company of Truth Social, may be poised for another surge due to a combination of legal developments and market dynamics. Recently, New York Supreme Court Justice Juan Merchan dismissed former President Donald Trump's arguments regarding presidential immunity, emphasizing the need for finality in his ongoing legal battles. While Trump faces an unconditional discharge, meaning no prison time or fines, the conviction will remain on his record. This resolution could provide clarity for investors, potentially stabilizing stock performance.
Additionally, despite recent fluctuations, Trump Media's stock has shown impressive growth, surging 104% over the past year. The company reported third-quarter net sales of $1.01 million, albeit a 6% decline year-on-year, with its revenue primarily driven by advertising on the Truth Social platform. An improved earnings per share (EPS) loss of 10 cents, compared to a 30-cent loss previously, further indicates a trend toward financial recovery.
Investors may also react positively to Trump's strategic moves, including transferring his 53% stake in the company to a revocable trust, which has not deterred stock performance. As DJT stock currently trades at $35.21, market sentiment could shift favorably, potentially leading to another bump in its value.
Trump Media's stock is expected to remain highly volatile over the next 12 months. The current wave of election-driven enthusiasm and meme-stock hype may fade, particularly after Trump assumes office. As investors shift their focus back to macroeconomic factors and elevated interest rates, the stock's momentum could falter.
When this shift occurs, Trump Media's stock may face a significant decline, potentially losing over 90% of its value while still appearing expensive compared to its revenue. This scenario reflects a disconnect between market excitement and underlying financial performance. Although the stock might continue to experience dramatic fluctuations in the near term, the lack of sustainable growth could lead to disillusionment among investors.
Those who chase gains from post-election rallies could find themselves vulnerable to substantial losses. As the euphoria subsides, the reality of the company's financial health will come into sharper focus, making it imperative for investors to exercise caution. In summary, while short-term volatility may provide trading opportunities, the long-term outlook suggests a painful correction for Trump Media’s stock, warranting careful consideration before investing.
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Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice.
