Market Volatility Hits Trump Media & Technology Group Stock
The stock market is experiencing unprecedented fluctuations, and Trump Media & Technology Group (DJT) is no exception. On Thursday, DJT shares plummeted by almost 12%, with trading briefly halted due to extreme volatility. This massive downturn comes on the heels of a 22% decline on Wednesday, wiping out over $3 billion from the company’s market capitalization since Tuesday.
Election Fever Fuels Market Swings
As the election approaches, DJT’s stock is expected to continue its wild ride. According to Matthew Tuttle, CEO of Tuttle Capital Management, the stock’s performance is directly tied to the election outcome. “It’s a binary bet on the election,” Tuttle stated. If Trump loses, Tuttle predicts the stock could plummet to $0.
Meme-Stock Frenzy
Interactive Brokers’ chief strategist Steve Sosnick notes that DJT has taken on a life of its own, with volatility working in both directions. “When a stock is that volatile in one direction, it has a tendency to be that volatile in the other direction,” Sosnick explained.
Betting Markets Shift in Favor of Trump
Prior to this week’s sell-off, DJT shares had risen as betting markets shifted in favor of a Trump victory. However, national polls show both candidates in a tight race, with key battleground states like Pennsylvania, Michigan, and Wisconsin hanging in the balance.
Truth Social’s Fundamentals Under Scrutiny
Trump founded Truth Social after being banned from major social media platforms following the January 6, 2021, Capitol riots. However, the company’s fundamentals have long been questioned. In August, DJT reported a net loss of $16.4 million, with revenue dropping 30% year-over-year.
Trump’s Stake in DJT
At current levels, Trump Media boasts a market capitalization of around $7 billion, giving Trump a stake worth approximately $4.2 billion. As the election approaches, investors are bracing for impact, with some predicting a potential collapse of the stock if Trump loses.
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