After a tumultuous two days, investors in Trump Media & Technology Group’s stock have finally seen an uptick in their shares. On Wednesday, the stock TMTG (DJT) rebounded by 20% in early afternoon trading after taking a significant fall earlier in the week. Despite this, the company is still down about 60% from its all-time high set on March 26 after merging with a blank-check acquisition company to go public.
Trump Media’s volatility can be attributed to its association with former President Donald Trump, which has captured the attention of investors, traders, and the media. Despite being worth billions, the company has struggled to make money and requires additional cash. Experts warn investors to be cautious when trading the stock, as the company lacks solid fundamentals to support its high valuation. In 2023, Trump Media lost $58 million and only generated $4.1 million in revenue.
The extreme fluctuations in the company’s stock have also impacted the net worth of its largest shareholder and chairman, Donald Trump, with his wealth decreasing by billions on bad days. Currently facing a criminal trial with 34 felony charges related to falsifying business records in an alleged hush money scheme before the 2016 election, Trump has entered a plea of not guilty. As legal proceedings continue to unfold, investors will need to closely monitor any developments that may impact Trump Media’s future performance.
