Shares of Truth Social (DJT) surged over 25% at one point on Friday after Donald Trump, who is the majority owner, stated that he has no plans to sell his stake in the social media company. Trump’s lockup agreement is set to expire soon, which would allow him to sell his shares, but he told the press at his California golf club, “I’m not selling.”
Trump explained that he launched Truth Social in order to have a strong voice rather than for financial gain. He also believes that as long as his voice remains on the platform, it will thrive. This will, undoubtedly, reassure the investors who were previously fearing a selloff once the lockup period expired. In fact, these fears had caused the company’s stock price hit new lows this week.
However, it is very unlikely that DJT investors are betting on the company for fundamental reasons, as it is a money-losing operation with low revenue and a market capitalization of over $3.7 billion. Instead, some analysts note that investing in the company has become a way for Trump’s supporters to back him or bet on his political future.
Is DJT Stock a Buy, Sell, or Hold?
Using TipRanks’ technical analysis tool, the indicators seem to point to a negative outlook for DJT stock. Indeed, the overall consensus pictured below shows that four indicators are Bullish, compared to three Neutral and 15 Bearish indicators.
See more DJT technical analysis
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
