- Investors on Reddit are sounding off on Donald Trump, his unpredictable ramblings and the case for building a position in Trump Media & Technology Group (NDAQ:DJT)
- Shares of DJT are down by more than 70 per cent since debuting on the Nasdaq in March 2024
- An investment today grants you exposure to an unprofitable company with an uncertain future
This week’s deep dive into what investors are talking about on Reddit reveals conflicting emotions about Donald Trump, what he has to offer the world, and whether his majority owned Trump Media & Technology Group (NDAQ:DJT) has any prospects for shareholder value creation.
The TL;DR on Trump Media & Technology Group
Shares of DJT are down by over 12 per cent after Trump’s second assassination attempt since July on Sunday afternoon, and have given back over 13 per cent since a weak performance at the Sept. 10 presidential debate with Vice President Kamala Harris, after which shares touched an all-time low.
Since the stock began trading on the Nasdaq in March, the picture only worsens, with investors having suffered a 70 per cent loss over the period driven by US$28.5 million in net losses combined across Q1 and Q2 2024, in addition to Trump’s ongoing legal troubles and recent guilty verdict for falsifying business records to conceal hush-money payments to adult film actress Stormy Daniels.
The company’s business plan is centred on providing spaces for free expression that are “uncancellable by Big Tech,” according to the Q2 2024 news release, through its members-only social media network Truth Social and its recently launched TV streaming platform Truth+, the latter designed to operate on in-house servers, routers and software that ensure its independence and uninterrupted programming.
While Trump Media & Technology Group is pursuing growth, having released products into the market, the company is, according to its Q1 2024 news release, more focused on long-term product development and profitability than quarterly revenue at the moment. This means that investors will likely be subject to pronounced volatility and continued losses, exaggerated by Trump’s engagements with the news cycle, for the foreseeable future, until the company can harness its robust US$344 million cash position, lack of debt and the former president’s undeniable popularity into a string of positive quarters and build a case for a stock price re-rating.
Until positive momentum presents itself on the balance sheet – including leaner expenses and heftier revenue, gross profitability and net income – investors interested in growing their portfolios instead of incinerating them should stay away from this one with a 10-foot pole.
Join the discussion: Find out what everybody’s saying about Donald Trump and his media stock on the Trump Media & Technology Group Corp. Bullboard and check out the rest of Stockhouse’s stock forums and message boards.
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(Top image of the Trump Media & Technology Group website and logo: Adobe Stock)
