Trump Media & Technology Stock Stays Volatile Ahead of Election Day
Trump Media & Technology shares have traded erratically in recent months and anxiety around Election Day is sparking more volatility in DJT stock.
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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free 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
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
4% and Chill? Find Out If This Distribution Rule Fits Your RetirementTake this simple quiz to discover whether the 4% Rule will work for you in retirement.
-
Oregon Tax Kicker in 2026: What's Your Refund?State Tax The Oregon kicker for 2025 state income taxes is coming. Here's how to calculate your credit and the eligibility rules.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market Today
The tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Yes, Artificial Intelligence Stocks Are BoomingIt's fair to ask about the latest tech boom, "Is it really different this time?"
-
I'm an Estate Planning Attorney: These Are the Estate Plan Details You Need to Discuss (And What to Keep Private)Gen Xers and Millennials would like to know if they're going to inherit (and how much), but Baby Boomers in general don't like to talk about money. What to do?
-
I'm a Financial Adviser: This Is How You Can Minimize the Damage of Bad Market Timing at RetirementPoor investment returns early in retirement on top of withdrawals can quickly drain your savings. The ideal plan helps prevent having to sell assets at a loss.
-
'You Owe Me a Refund': Readers Report Challenging Their Attorneys' BillsThe article about lawyers billing clients for hours of work that AI did in seconds generated quite a response. One law firm even called a staff meeting.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
7 Questions to Help Kick Off an Estate Planning Talk With Your ParentsIt can be hard for aging parents to discuss estate plans — and for adult kids to broach the topic. Here are seven questions to get the conversation started
