Current:Home > MyDJT stock is on a winning streak. But is Trump Media a risky investment? -TradeWisdom
DJT stock is on a winning streak. But is Trump Media a risky investment?
View
Date:2025-04-12 07:37:07
Just weeks out from Election Day, Trump Media & Technology Group is on a winning streak.
Shares surged Monday after a surprise appearance by Tesla CEO Elon Musk at Donald Trump’s return to Butler, Pennsylvania, where he survived a July 13 assassination attempt.
Tuesday saw another rally as investors sized up Democratic nominee Kamala Harris’ performance in a recent flurry of media appearances. Shares jumped nearly 19% to $21.80.
While the presidential race is shaping up to be a nail-biter, “the perception is that he is now winning,” Tuttle Capital Management CEO Matthew Tuttle said of Trump.
The publicly traded social media company whose majority shareholder could be the next president of the United States is an investment some are eager to wager on. The flagship product Truth Social is the GOP presidential nominee’s bullhorn of choice, so it would be required reading during a Trump administration.
That explains why Trump Media shares are on a four-day tear, erasing some recent losses. But the stock’s wild swings are a reminder of how risky placing bets on Trump Media can be, Tuttle said. Shares have lost more than 60% of their value since the company’s public debut.
“It’s a huge gamble for long-term investors,” he said.
Trump Media’s fate, like Trump’s, will be decided at the ballot box, according to Tuttle.
In regulatory filings, Trump Media has telegraphed how critical Trump is to the company’s brand, warning that its value “may diminish” if Trump’s popularity falters.
What’s more, Trump Media does not trade on its business fundamentals. It’s losing money and has nearly no revenue. In August, it disclosed a net loss of $16.4 million on revenue of just under $837,000, a year-over-year decline of 30%.
The company has also been dogged by litigation and reports of management turmoil. The company disclosed in a regulatory filing Thursday that its chief operating officer, Andrew Northwall, resigned last month and that it would release nearly 800,000 shares to an early investor because of a court order.
“If he wins, they could do something with this company,” Tuttle said of Trump. “If he loses I don’t see any way it stays afloat.”
Trump Media shares have been under pressure since President Joe Biden dropped out of the presidential race.
Last month the stock plunged to its lowest level since it began trading as a public company after the six-month lock-up period for insiders including Trump to unload shares expired.
Trump has said he will not sell his 60% stake in Trump Media, worth about $1.6 billion. At Trump Media’s height, his stake was worth nearly three times that.
veryGood! (26375)
Related
- South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
- Soldiers use this fast, cheap solution to quickly cool down in the scorching heat. And you can, too.
- Mandy Moore Shares Pregnancy Melasma Issues
- At half a mile a week, Texas border wall will take around 30 years and $20 billion to build
- Jorge Ramos reveals his final day with 'Noticiero Univision': 'It's been quite a ride'
- Victoria and David Beckham recreate iconic purple wedding outfits ahead of 25th anniversary
- Lucky Blue Smith's Ex Stormi Bree Reacts to Nara Smith's TikTok Fame
- Copa America 2024: Knockout stage bracket is set
- Paris Hilton, Nicole Richie return for an 'Encore,' reminisce about 'The Simple Life'
- Mandy Moore Shares Pregnancy Melasma Issues
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Is the stock market open or closed on July 4th 2024? See full holiday schedule
- Netflix's Man With 1,000 Kids Subject Jonathan Meijer Defends His Serial Sperm Donation
- Arizona abortion rights advocates submit double the signatures needed to put constitutional amendment on ballot
- Megan Fox's ex Brian Austin Green tells Machine Gun Kelly to 'grow up'
- Man tells jury he found body but had no role in fatal attack on Detroit synagogue leader
- Is there life on another planet? Gliese 12b shows some promise. | The Excerpt
- 9 killed in overnight strike in Gaza's Khan Younis, hours after Israel ordered mass evacuation
Recommendation
Average rate on 30
In letters, texts and posts, Jan. 6 victims react to Supreme Court ruling on Trump immunity
As Gunnar Henderson awaits All-Star turn, baseball world discovers his 'electric' talent
Mega Millions winning numbers for July 2 drawing: Jackpot grows to $162 million
NFL Week 15 picks straight up and against spread: Bills, Lions put No. 1 seed hopes on line
The July 4th holiday rush is on. TSA expects to screen a record number of travelers this weekend
Bookcases recalled nearly a year after 4-year-old killed by tip-over
Robert Towne, legendary Hollywood screenwriter of Chinatown, dies at 89