After a week of strong momentum, the Trump Media & Technology Group (DJT) is down today and falling fast. The 2024 U.S. presidential election is quickly approaching, and the stakes are high for both political parties. While political betting markets have been swinging in Trump’s favor recently, his instability and questionable future are likely starting to override this tailwind, working against DJT stock.
What’s Going On with DJT Stock Today?
As of this writing, DJT stock is down 6% for the day and isn’t showing signs of a rebound. It may be tempting to chalk this performance up to general negative market momentum. However, fellow Trump-trade Phunware (PHUN), a software company linked to previous Trump campaigns, is rising today and, so far, is performing well. This suggests that DJT’s problems may be company-specific.
Trump’s recent election-driven momentum has done a good job boosting DJT stock. Shares have surged almost 90% over the past month. However, the company still comes with quite a bit of risk, and that isn’t just because of its strong ties to Trump. A look at its history and financials reveals some concerning elements.
TipRanks contributor Joel Baglole recently reported on Trump Media’s problems after the Nasdaq halted trading due to extreme volatility. “Trump Media has reported abysmal financial results since going public and has seen executive departures in recent months, leading to speculation that the company could file for bankruptcy,” he noted.
Is DJT Stock a Sell?
Another element that Baglole adds is that “analysts and traders tend to regard Trump Media as a meme stock.” This is reflected in the fact that there is currently no analyst coverage of DJT stock, suggesting that Wall Street doesn’t take it seriously. Other meme stocks, such as Gamestop (GME) or AMC Entertainment (AMC), don’t receive many ratings due to their perceived instability.
That factor is likely the biggest contributor to DJT stock’s declines today. Even as Trump and Democratic rival Kamala Harris remain in close competition, the company that trades with his initials is falling as uncertainty regarding his political future continues to abound.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
