Tuesday Update: What’s Behind the Surge in Trump Media & Technology Group (NASDAQ: DJT) Stock?

Trump Media & Technology Group Corp DJT saw a drop of over 11% in its stock value on Tuesday, coinciding with U.S. President Donald Trump taking office. Let’s break down what’s happening.

Key Points: Trump Media, the company behind the social media site Truth Social, faced a significant decline in share prices following Trump’s inauguration. This stock has seen fluctuations linked to Trump’s 2024 reelection prospects in recent months.

Even with the recent downturn, Trump Media shares have risen nearly 14% in the last three months, largely due to Trump’s win last November. Trump owns over 50% of Trump Media, which translates to around 114.5 million shares.

Some of the selling on Tuesday may have stemmed from investors redirecting funds into Trump’s new meme coin, Trump TRUMP/USD, which rose about 18% within 24 hours.

Upcoming Financial Results: Trump Media is set to release its fourth-quarter financial results in about two weeks. In the previous quarter, the company reported a net loss of $19.2 million and revenue of $1.01 million, marking a 6% drop from the previous year.

The management at Trump Media noted that stock performance might be influenced more by Trump’s popularity than by the company’s financial health. They acknowledged that if Trump’s image were to falter, it could negatively impact Trump Media’s brand value.

DJT Stock Performance: On Tuesday, Trump Media shares finished down 11.09% at $35.59, with a minor dip of 0.45% in after-hours trading.

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