daz888888888
09-14

$Trump Media & Technology(DJT)$  

Trump social-media stock 'DJT' soars as former president says he won't sell when lockup period ends.

'I have absolutely no intention of selling,' former president says.

Shares of Trump Media & Technology Group Corp. $(DJT)$ jumped Friday after Republican presidential nominee Donald Trump said he didn't plan to sell his stake in the company when a lockup period ends later this month.

"No, I'm not selling. No, I love it. I mean, I use it as a method of getting out my word," Trump told reporters when asked whether he'd hold on to his stake in the parent company of his Truth Social platform.

The stock, which trades under the ticker DJT, was trading 18% higher for Friday's session, but it remains well below its 52-week closing high, which was hit in March.

"The reason it's down is that a lot of people think I'm going to sell, and if I sell, it wouldn't be the same. I can understand that, but I have absolutely no intention of selling," Trump said.

The lockup period is set to end on Sept. 25, according to a regulatory filing.

Trump Media & Technology had been on track for a big weekly drop until the former president's comments, which were made during a wide-ranging news conference at his golf club in Rancho Palos Verdes, Calif.

The stock's decline earlier this week came as financial markets moved in a way consistent with a reduced likelihood of a second Trump presidency following his debate Tuesday night with Democratic nominee Kamala Harris.

Related: The market has called a winner in Tuesday's debate, and it's Kamala Harris

And see: A stock-market 'Harris trade' is starting to take shape

Plus: Here's why the 'Harris trade' could be 'completely overblown'

Trump pushed back when questioned about his performance at the debate during Friday's news conference.

"We've gotten great praise for the debate," he told reporters.

The Harris campaign criticized Trump over his news conference, saying in a statement that it was a "rambling, defensive, often incoherent event to promote his golf course."

Tomi Kilgore contributed.


Daily Scoop 🍨: Donald Trump’s DJT A Strong Buy Now With Plenty Of Upside

@daz888888888：
$Trump Media & Technology(DJT)$ Donald Trump is one of the world's most famous businessmen, but his companies have usually been privately held. Now investors have the chance to throw their lot in with the former president of the United States through Trump Media & Technology (DJT). Its main product Truth Social has a tough task as it competes with X, owned by Tesla (TSLA) CEO Elon Musk. The stock has plunged following the presidential debate against Democrat rival Kamala Harris, but is DJT stock a buy now? Read on to find out. ↑ X Harris-Trump Debate: 4 Takeways For Investors NOW PLAYING Harris-Trump Debate: 4 Takeways For Investors The social media play made its stock market debut after merging with special purpose acquisition company (SPAC) Digital World Acquisition. It trades on the Nasdaq under the ticker "DJT." These are the former president's initials, a touch sure to please supporters. Trump has boasted that he will offer a "Big Tent" platform as he attempts to take on technology giants such as X, formerly Twitter, and Facebook parent Meta Platforms (META). But it remains to be seen whether this is enough to make the ultimate Donald Trump stock a buy now. Donald Trump On DJT Trump Media's main product at the moment is Truth Social, a platform touted as an alternative to Twitter. It is now available on Apple and Android devices. In an investor presentation, the firm said it expects Truth Social average revenue per user can grow to $13.50 by 2026. It also expects to have 81 million users by then. The company does not report that number. It is estimated it currently has about 1 million to 2 million users. It also guided for 40 million TMTG+ subscribers by 2026. The average monthly fee per user is seen hitting $9 that year. Trump, who was struggling to reach his audience via social media following the Jan. 6 Capitol riot, unveiled his vision for the company in October 2021. "Unlike with the Big Tech platforms, there will be no shadow-banning, throttling, demonetizing, or messing with algorithms for political manipulation," Trump said in a statement. "We will not be treating users like lab rats for social experiments, or labeling alternative views as 'disinformation.'" Merger Finally Takes Place It faced a lot of challenges, but Digital World finally won approval to finish its business merger with Trump Media and Technology Group in March. The key vote finally took place on March 22, and was voted through overwhelmingly. In total, there were 26,633,233 votes in favor of the merger and just 66,010 against. A further 51,890 abstained. Ahead of the event the then-Miami-based SPAC had a history of postponing and rescheduling shareholder votes. Trump Media Appoints New Auditor Among its woes, Trump Media was forced to hire a new auditor in May. The move came after the last company in the role was accused of fraud by the SEC. The company has hired Semple, Marchal & Cooper LLP after firing BF Borgers CPA. It made the move after the latter company was accused of failing to perform actual audits of its clients. The firm was also accused of signing off on more than 1,500 regulatory filings for public companies. "The decision to change independent registered public accounting firms was made with the recommendation and approval of the Audit Committee of the Company," Trump Media said in a filing. Donald Trump Returns To X Truth Social's biggest competitor is X, formerly Twitter, got a massive boost after Tesla CEO Elon Musk decided to buy the company. The tech billionaire purchased Twitter for the originally-agreed $54.20 per share after a long-running legal battle. The total price tag equated to about $44 billion. Elon Musk opened the way for Trump to return to the platform by reinstating the former president's account on Nov. 20 after a public vote. The Twitter poll, which received more than 15 million responses, saw 51.8% vote in favor of Trump's return. Trump finally made his long-awaited return to the service on Aug. 24, 2023 to post his mugshot, along with a fundraising link for his 2024 presidential bid. He has been posting regularly of late in the run-up to the 2024 presidential election. Trump Loves Truth While Trump cheered Musk's takeover by saying he is "very happy that Twitter is now in sane hands," he also underlined his dedication to his own platform, saying "I LOVE TRUTH!" Trump has consistently committed himself to his own site, which is important to the future of his own product given he is a massive social media draw. With Trump running for president once again it could give his platform a boost in traffic and sign-ups. Legal Woes Plague Trump While DJT stock is closely tied to the value of the Donald Trump brand, it had showed resilience despite the scandals enveloping the former president. Previously, a grand jury voted to indict Trump last year after hearing evidence he allegedly paid hush-money to porn star Stormy Daniels during the 2016 election. And in May a New York jury found him guilty of 34 counts of falsifying business records in the first degree. That was the first time in history a former U.S. president has faced criminal charges. Earlier this month Judge Juan Merchan delayed sentencing until Nov. 26, after the election. Meanwhile, Special Counsel Jack Smith has appealed the decision by Judge Aileen M. Cannon in Miami to dismiss the case that that Trump unlawfully kept classified national security documents after leaving office and lied to officials who tried to recover them. She dismissed it on the grounds that Smith's appointment is unconstitutional. Trump previously pleaded not guilty to charges he conspired to defraud the U.S. by stopping Congress from certifying Joe Biden's 2020 election victory and to deprive voters of their right to a fair election. The prosecution filed a revised indictment in late August after the Supreme Court ruled that former presidents are immune from criminal prosecution for most official acts taken while in office. And in August he was indicted by a Georgia grand jury on 13 charges. It is claimed he "unlawfully conspired" to change the election outcome while participating in a "criminal enterprise." However Trump denies all of the charges and the case continues to drag on. As if that wasn't enough, Trump and his companies have been ordered to pay $355 million following a civil lawsuit in New York. Trump is appealing this judgment. DJT Stock Hammered After Kamala Harris Debate The IBD Stock Analysis shows inherent problems with DJT stock. Its IBD Composite Rating, which ranks all-around performance, sits at 3 out of 99. It had seen its Relative Strength Rating rise to 99 out of 99 amid merger ebullience, but it has now sunk to just 12. This puts it in the bottom 12% of stocks in terms of market performance over the past 12 months. It crashed 70.8% in 2022, dreadful performance by anybody's standards, before it ended 2023 up 16.7%. This lagged the S&P 500's gain of more than 24.2%. DJT was hammered following Donald Trump's underwhelming performance against Democrat rival Kamala Harris in their first presidential debate. The stock fell to its lowest levels since its merger, ending the Sept. 11 down 10.5%. Earlier this year Trump Technology stock was handsomely outperforming the benchmark index, but it is now lagging badly behind. So far in 2024, DJT stock is down nearly 5% after previously being up by more than 200%. In contrast, the S&P 500 is up almost 17%. It previously flashed round-trip sell signals from a consolidation 58.72 and an old cup-base entry of 25.85. It also flashed another sell signal by sinking below its 50-day moving average. The stock is down by about 90% from its all-time high of 175, which it reached in October 2021 when it still traded as SPAC Digital World. It is also down nearly 80% on this year's high of 79.38, which it reached in March. The hype around Trump has allowed the stock to vault to dizzying heights. But it has then ended up plummeting back to Earth every time. Donald Trump Stock Misses This Key Ingredient Investors should look for stocks that boast consistent earnings growth if they are following IBD investing principles. But this is another area where DWAC stock falls short. Its lack of earnings has netted it a dismal EPS Rating of 15 out of 99. The stock tumbled after its most recent earnings report. Its loss per share narrowed to 12 cents from 17 cents a year ago. However it also endured another quarter of sub-$1 million revenue. Net sales of $836,000 were down 30% vs. a year earlier. Trump Media has lost money in each of the past four quarters, MarketSurge data shows. In addition, there are no analyst earnings estimates for the ultimate Donald Trump stock. There are a lot of hurdles to overcome for the stock as it tries to become a profitable enterprise. Not least is the fact Trump has entered an arena dominated by giants such as Facebook, X, TikTok and Snap (SNAP). Institutional sentiment is lukewarm at best. It holds an Accumulation/Distribution Rating of C+, which reflects slightly more buying than selling among funds in recent weeks. But overall ownership remains extremely low, with just 7% of shares being held by funds. This Worry Remains For DJT Stock At the moment Donald Trump owns almost 59% of the company's outstanding shares. The lock-up period prohibiting the former president from selling his stake is scheduled to expire by Sept. 25, according to filings. It remains to be seen whether Trump will try to sell some stock or even cash out completely. The big issue here is if he does try to liquidate his holdings, it would cause the share price to drop dramatically.
Daily Scoop 🍨: Donald Trump’s DJT A Strong Buy Now With Plenty Of Upside
# Will DJT Plunge as Lockup Period Ends on Friday?

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