Trump Media & Technology Group (DJT) stock has been volatile since the media company merged with special purpose acquisition company (SPAC) Digital World Acquisition in late March. And DJT stock is on the move again ahead of Election Day, when voting concludes to determine whether current Vice President Kamala Harris or former President Donald Trump will be the next president of the United States.
Indeed, DJT stock is down nearly 47% since March 26, but nearly quadrupled between September 23 and October 28. Today, shares were up more than 4% out of the gate before swinging to a nearly 5% intraday loss. Most recently, DJT stock is trading slightly higher.
Is DJT stock a buy, sell or hold?
Given this volatility, many market participants may be wondering if DJT stock is worth buying, but the truth of the matter is it remains a risky proposition for investors.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One warning sign is that there is currently no analyst coverage on shares of Trump Media & Technology, at least as far S&P Global Market Intelligence is concerned. Analysts typically have access to research and information not readily available to retail investors, so having their insight is helpful when determining the best stocks to buy, as well as the worst.
That said, Interactive Brokers Chief Strategist Steve Sosnick offered some insight on DJT stock several months back.
In a March 26 note, Sosnick said he believes there are "political motivations driving the stock," and "that the company's most devoted investors viewed it as a call option on the MAGA movement."
DJT stock's underlying fundamentals also make it speculative investment for market participants. For instance, in August, the company reported second-quarter results, showing $836,900 in revenue, down 30% from the year-ago period. Trump Media & Technology Group also posted a net loss of $16.4 million.
However, Sosnick says that if "one's investment decisions are based primarily upon emotions, then it is hardly a surprise that standard valuation metrics will be cast aside. True believers don't really care about prosaic concerns like price-to-earnings (P/E) ratios and the like. They're not doing detailed calculations about the discounted future cash flows of their favorite stocks."
DJT is hardly a penny stock and Trump Media & Technology Group boasts a market cap of nearly $4 billion. Nevertheless, DJT stock remains a very risky and speculative play for market participants and if you do decide to trade it, do so in a small amount with money you can afford to lose.
Related Content
-
Berkshire Hathaway's in the 100,000% Return Club. No Surprise HereWarren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
-
4 Turnaround Stocks to Consider – and 2 More to Keep an Eye OnA turnaround stock is a struggling company with a strong makeover plan that can pay off for intrepid investors.
-
It's No Surprise That Berkshire Hathaway's in the 100,000% Return ClubWarren Buffett's fascination with the insurance industry has helped Berkshire Hathaway's stock return snowball.
-
4 Turnaround Stocks to Consider – and 2 More to Keep an Eye OnA turnaround stock is a struggling company with a strong makeover plan that can pay off for intrepid investors.
-
Facing a Layoff? Ask Your Employer These Questions NowIf you're being laid off or forced into early retirement, don't make any decisions without proper guidance — and that starts by asking some key questions.
-
Stock Market Today: Dow Jumps 674 Points in Friday's Relief RallyThe gains weren't limited to stocks, though, with gold futures closing above the $3,000 per ounce mark for the first time.
-
Have $1M+ Saved? Consider a Financial Planning One-Stop ShopA 'one-stop shop' team — including a financial planner, estate planning lawyer, CPA and more — could serve all of your tax, estate and retirement planning needs.
-
Stock Market Today: Stocks Drop on Trump's EU Tariff ThreatsThe White House said alcohol imports from the European Union could soon face tariffs of 200%.
-
Five Ways to Safeguard Your Portfolio in Market DownturnsThe stock market is nothing if not volatile these days. When it takes a dip, a well-managed, properly diversified portfolio could help you ride out the storm.
-
Stock Market Today: Nasdaq Shines In Volatile SessionIt was another up-and-down day for stocks as market participants weighed encouraging inflation data against the latest tariff headlines.
