Trump Media & Technology Stock Stays Volatile After Debate
Trump Media & Technology stock has traded erratically in recent months and last night's presidential debate sparked more volatility in DJT shares.
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 following Tuesday night's presidential debate between current Vice President Kamala Harris and former President Donald Trump.
Indeed, DJT stock is down nearly 68% since March 26, but gained roughly 10% in the five days leading up to the debate. Today, shares were down nearly 14% in pre-market trading, and opened solidly in the red.
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
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Joey Solitro is a freelance financial journalist at Kiplinger with more than a decade of experience. A longtime equity analyst, Joey has covered a range of industries for media outlets including The Motley Fool, Seeking Alpha, Market Realist, and TipRanks. Joey holds a bachelor's degree in business administration.
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
Want to Give Money to Your Adult Children? 10 Things You Should Know
It’s less taxing to give money to your adult children than you might think. A good plan can help you avoid certain pitfalls — and drama.
By Jeremy Greenfield Published
-
Potential Ripple Effects of Taxing Unrealized Capital Gains
The proposed tax on unrealized gains would be limited to those with a net worth above $100 million, but some see a broad impact on markets and businesses.
By Brian Skrobonja, Chartered Financial Consultant (ChFC®) Published
-
Succession Musts: Thoughtful Planning and Frank Discussions
When it comes to passing on the family business, you don't want anyone to be surprised about who will control or inherit the business after the owner's death.
By David Handler, J.D. Published
-
How to Navigate Finances as a Blended Family
If you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.
By Ella Vincent Published
-
Here's How to Find Your Way Out of the Inherited IRA Maze
To navigate complex rules on inherited IRAs and RMDs, start by breaking down key terms and common scenarios. A clearer picture of your next steps will emerge.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Rally on Strong Netflix Earnings
Mega-cap tech leads the charge as markets rise for a sixth straight week.
By Dan Burrows Published
-
Why American Express Earnings Have the Dow Stock Lower
American Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.
By Joey Solitro Published
-
CVS Stock Falls After Karen Lynch Ouster: What to Know
CVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately
By Joey Solitro Published
-
Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's Why
Netflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.
By Joey Solitro Published