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
Be a smarter, better informed investor.
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
-
Planning a Major Home Renovation? 3 Smart Ways to Finance ItFrom HELOCs to personal loans, here’s how to pay for a major home renovation without draining your savings.
-
Six Warren Buffett Quotes Every Retiree Should Live ByThe 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
Six Warren Buffett Quotes Every Retiree Should Live By
The 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant WealthCutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.
-
To Unwrap a Budget-Friendly Holiday, Consider These Smart Moves From a Financial ProfessionalYou can avoid a 'holiday hangover' of debt by setting a realistic budget, making a detailed list, considering alternative gifts, starting to save now and more.
-
Stocks Rise to End a Volatile Week: Stock Market TodayThe market's fear index reached and retreated from a six-month intraday peak on Friday as stocks closed the week well.
-
I Bought Palantir When It Was Trading at $8. Now It's $180 and I've Made $1 Million. What Do I Do?What do you do with all that appreciated Palantir stock? We asked a financial expert for advice.
-
Treat Home Equity Like Other Investments in Your Retirement Plan: Look at Its Track RecordHomeowners who are considering using home equity in their retirement plan can analyze it like they do their other investments. Here's how.
-
Why Does It Take Insurers So Darn Long to Pay Claims? An Insurance Expert ExplainsThe process of verification, investigation and cost assessment after a loss is complex and goes beyond simply cutting a check.
-
Two Reasons to Consider Deferred Compensation in the Wake of the OBBB, From a Financial PlannerDeferred compensation plans let you potentially lower your current taxes and help to keep you out of a higher tax bracket. It's important to consider the risks.
