Over five days, Trump Media stocks have seen a substantial decline and gained momentum. This company’s rollercoaster ride is as much of a show as the man behind the brand. Here is everything you need to know to catch up before its next big story arc…
The Violent Freefall of Trump Media Stock
On Jun 21, 2024, Trump Media & Technology Group (DJT) had officially lost 50% of its value since May 30th…
The day that concluded the former President’s trial. However, that was not the only driving force behind this significant value drop.
Some finance experts suggested that this was a long time coming. They have compared DJT to Gamestop as a “meme stock.” That means these analysts believe that the value of Trump Media is falsely inflated.
Senior IPO market strategist for Renaissance Capital, Matthew Kennedy, shared his opinion with CNN.
“THIS IS A DEVELOPMENT-STAGE COMPANY WITH A MULTI-BILLION-DOLLAR VALUATION… WHEN A COMPANY’S STOCK DROPS SIGNIFICANTLY, YOU TYPICALLY START TO SEE VALUE INVESTORS TAKE INTEREST, BUT THAT’S NOT THE CASE WITH MEME STOCKS.”
Additionally, Trump Media was permitted by the SEC to allow early investors to cash in “warrants” for shares. This allows the company to raise more capital, but waters down shares.
From an external perspective, things looked bleak. However, it was only five days later the stock began to creep up again…
Don’t Count DJT Out Yet
On Jun 25, 2024, started gaining traction ahead of the first presidential debate.
THAT EQUATED TO TRUMP MEDIA HAVING THREE DAYS OF STRAIGHT INCREASE AND 9% GROWTH OVERALL.
Via USA Today
That being said, that is a far cry from the stock’s highest-ever value of $79.38. But, it’s also not as rough as its all-time low of $22.55…
The fact of the matter is that whether DJT is a meme stock or not, the election year ahead is going to be a contributor to its value.
We’ll keep watching the campaign trail for what’s next…
Be Great,
GCTV Staff
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