Trump Media & Technology Group (DJT) fell sharply by 5.03% intraday on Monday, as investors grew wary of the sustainability of its recent rally fueled by a merger with nuclear fusion company TAE Technologies.
The stock had surged 42% last Thursday and another 8.3% on Friday following the announcement of the all-stock deal valued at over $6 billion. However, concerns about the company's financial health, lack of Wall Street analyst coverage, and uncertainties surrounding the viability of nuclear fusion technology have dampened investor enthusiasm.
Trump Media reported a net loss of $54.8 million in the third quarter, and its significant bet on Bitcoin has also underperformed. Despite the recent gains, the stock remains down 53% for the year, reflecting ongoing skepticism about its long-term prospects.
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