DJT SPAC: Trump Media's Stock Price Is Probably Going to Crash
Business InsiderApr 02
Shares in Trump Media Drop After Securities and Exchange Commission Filing
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The Facts
Shares in Trump Media & Technology Group, former Pres. Donald Trump's social media company that began trading last week under the ticker "DJT," Monday slumped by more than 20% after the company's Securities and Exchange Commission (SEC) filing worried some investors.
The filing showed Trump Media made $4.1M in revenue for 2023 with a net loss of $58.2M. Fourth-quarter sales totaled $750K.
The Spin
Anti-Trump narrative
The suspected disconnect between Trump Media's performance and the inflated stock price has now been confirmed. It turns out "anti-wokeness" doesn't sell the way Trump and his allies had hoped. This could spell catastrophe for investors while also not providing Trump the financial windfall he hoped for.
Pro-Trump narrative
No one is denying this is a meme stock, which is attracting as many investors who want to show their support for Trump as it's attracting investors who believe in the company. A little volatility was to be expected. The only thing that may doom Trump Media is a second term for Pres. Joe Biden, but Trump seems on pace to prevent that from happening.
