Trump Media & Technology Group Corp’s Initial Stock Spike Diminishes

Photo of author
Written By Marcus Reynolds

Trump Media & Technology Group Corp. (NASDAQ: DJT) experienced a significant surge in stock price following its merger with Digital World Acquisition Corp (DWAC), leading to the public launch of Truth Social.

Despite the initial spike, the enthusiasm has since waned, with most of the early gains erased and overall interest in the stock diminishing.

Potential Reasons for Investment

The cornerstone of DJT’s portfolio, Truth Social, emerged in 2022, positioning itself as an alternative to mainstream social media platforms criticized for perceived stringent and biased content moderation policies.

Credit: DepositPhotos

Boasting around 1 million active monthly users, the platform represents a burgeoning community potentially lucrative for content creators. The revenue growth over the past two years further highlights the platform’s rapid expansion, making a case for its valuation and future growth prospects.

Opportunity for a Short Squeeze

The phenomenon of short squeezes, exemplified by the GameStop saga, has captivated many investors looking for rapid gains.

DJT has become a focal point for such speculative activity, characterized by high borrowing costs for shorts, indicating a precarious position for those betting against the stock.

With approximately 12% of the float shorted and a significant portion locked up by insiders, conditions are ripe for a potential squeeze, driven by market dynamics or catalysts related to Donald Trump’s legal and political landscape.

Speculation on Trump’s Influence

Investing in DJT also means speculating on the outcomes of Donald Trump’s numerous legal challenges and political endeavors.

Success in these arenas could act as a catalyst for the stock, potentially triggering a short squeeze and providing speculative gains for investors positioned ahead of these events.

Arguments Against Investment

Despite revenue growth, DJT’s fundamentals raise concerns. The company’s financials reveal a loss of 54 cents per share in 2023, alongside escalating interest expenses. The reliance on debt financing and operational losses cast doubt on the company’s sustainability and turnaround potential.

Moreover, the shifting social media landscape, particularly with X (formerly Twitter) under Elon Musk’s leadership, suggests a diminishing niche for Truth Social, further exacerbated by advertising retention challenges.

High Valuation Concerns

DJT’s market capitalization of $1.8 billion stands in stark contrast to its active user base, resulting in an inflated value per user metric when compared to industry norms.

Adjustments based on average price-to-sales ratios in the sector suggest a significantly lower intrinsic value, highlighting the disconnect between the stock’s market value and its underlying financials.

Risks Tied to Trump and Insider Actions

The “Trump Premium” could swiftly become a “Trump Discount” depending on the outcome of elections, trials, and the potential sale of shares by insiders following lock-up expirations.

Notably, legal challenges faced by early backers of DJT and insider trading convictions among associated individuals underscore the heightened risk profile associated with the stock.

Highly Speculative Venture

Investing in Trump Media & Technology Group Corp. presents a highly speculative venture rather than a traditional investment based on sound financial analysis.

The disconnection between the company’s stock price and its fundamental value, compounded by the speculative nature tied to Donald Trump’s legal and political fortunes, renders DJT a risky proposition.

Credit: DepositPhotos

The current state of the market and DJT’s financial health suggests that potential investors should approach with caution, prioritizing a thorough assessment of risks over the allure of speculative gains.

In essence, the case for staying clear of DJT stock is compelling, advocating for caution and a strategic reassessment for those considering an investment in this volatile and uncertain landscape.


You should read and understand this disclaimer in its entirety before joining or viewing the website or email/blog list of (the “Publisher”). The information (collectively the “Advertisement”) disseminated by email, text or other method by the Publisher including this publication is a paid commercial advertisement and should not be relied upon for making an investment decision or any other purpose. The Publisher is engaged in the business of marketing and advertising the securities of publicly traded companies in exchange for compensation. The track record, gains, upside, and/or losses mentioned in the Advertisement, if any, should not be considered as true or accurate or be the basis for an investment. The Publisher does not verify the accuracy or completeness of any information included in the Advertisement. While the Publisher does not charge for the SMS service, standard carrier message and data rates may apply. To unsubscribe from receiving promotional text messages to your phone sent via an autodialer, using your phone reply to the sender’s phone number with the word STOP or HELP for help.

The Advertisement is not a solicitation or recommendation to buy securities of the advertised company. An offer to buy or sell securities can be made only by a disclosure document that complies with applicable securities laws and only in the states or other jurisdictions in which the security is eligible for sale. The Advertisement is not a disclosure document. The Advertisement is only a favorable snapshot of unverified information about the advertised company. An investor considering purchasing the securities, should always do so only with the assistance of his legal, tax and investment advisors. Investors should review with his or her investment advisor, tax advisor or attorney, if and to the extent available, any information concerning a potential investment at the web sites of the U.S. Securities and Exchange Commission (the "SEC") at; the Financial Industry Regulatory Authority (the "FINRA") at, and relevant State Securities Administrator website and the OTC Markets website at The Publisher cautions investors to read the SEC advisory to investors concerning Internet Stock Fraud at, as well as related information published by the FINRA on how to invest carefully. Investors are responsible for verifying all information in the Advertisement. As an advertiser, we do not verify any information we publish. The Advertisement should not be considered true or complete.

The Publisher does not offer investment advice or analysis, and the Publisher further urges you to consult your own independent tax, business, financial and investment advisors concerning any investment you make in securities particularly those quoted on the OTC Markets. Investing in securities is highly speculative and carries an extremely high degree of risk. You could lose your entire investment if you invest in any company mentioned in the Advertisement. You acknowledge that we are not an investment advisory service, a broker-dealer or an investment adviser and we are not qualified to act as such. You acknowledge that you will consult with your own independent, tax, financial and/or legal advisers regarding any decisions as to any company mentioned here. We have not determined if the Advertisement is accurate, correct or truthful. The Advertisement is compiled from publicly available information, which include, but are not limited to, no cost online research, magazines, newspapers, reports filed with the SEC or information furnished by way of press releases. Because all information relied upon by us in preparing an advertisement about an issuer comes from a public source, it is not reliable, and you should not assume it is accurate or complete.

By your subscription to our profiles, the viewing of this profile and/or use of our website, you have agreed and acknowledged the terms of our full disclaimer and privacy policy which can be viewed at the following link: and

By accepting the Advertisement, you agree and acknowledge that any hyperlinks to the website of (1) a client company, (2) the party issuing or preparing the information for the company, or (3) other information contained in the Advertisement is provided only for your reference and convenience. The advertiser is not responsible for the accuracy or reliability of these external sites, nor is it responsible for the content, opinions, products or other materials on external sites or information sources. If you use, act upon or make decisions in reliance on information contained in any disseminated report/release or any hyperlink, you do so at your own risk and agree to hold us, our officers, directors, shareholders, affiliates and agents harmless. You acknowledge that you are not relying on the Publisher, and we are not liable for, any actions taken by you based on any information contained in any disseminated email or hyperlink.