Mitrade Insights is dedicated to providing investors with rich, timely and most valuable financial information to help investors grasp the market situation and find timely trading opportunities.

2021

Best News & Analysis Provider

FxDailyInfo

2022

Best Forex Educational Resources Global

International Business Magazine

Insights

News

Why Trump Media Stock Sank This Week

Source The Motley Fool

Trump Media (NASDAQ: DJT) stock saw a significant valuation pullback over the last week of trading. The company's share price closed out the weekly session down 18.3%, according to data from S&P Global Market Intelligence. The sell-off came despite a 1.7% gain for the S&P 500 index and a 1.6% gain for the Nasdaq Composite index.

Trump Media stock lost ground over the last week due to a "buy the rumor, sell the news" dynamic following President Trump's inauguration. The company's share price also appears to have seen bearish pressures due to the launch of the Official Trump cryptocurrency.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks »

Trump Media stock fades on post-inauguration momentum and crypto controversy

President Trump's inauguration was held on Jan. 20, and some investors had been betting that his return to the White House would help spur bullish momentum for Trump Media stock. Prior to a move that shifted all his holdings into a trust for which he is listed as the sole beneficiary, President Trump had been the company's largest shareholder.

With the post-inauguration rally for Trump Media's share price failing to materialize, some investors opted to sell their shares, causing the stock to see an even bigger valuation pullback.

President Trump's move to launch the Official Trump meme coin before returning to office may have also been a negative valuation catalyst for Trump Media stock. While some investors are excited about what the new presidential administration could mean for the crypto token, others have raised concerns that the new token reflects poorly on the broader industry. Similarly, negative sentiment surrounding Official Trump may have dampened enthusiasm for Trump Media stock.

What comes next for Trump Media stock?

Following the pullback for the stock this week, Trump Media now has a market capitalization of roughly $7.1 billion. Meanwhile, the company's core business has generated sales of only roughly $1.61 million over its first three quarters as a publicly traded company.

While the business's association with President Trump creates some brand strength advantages that could help drive growth, Trump Media trades at a lofty valuation compared to its sales performance. Additionally, it's unclear what path the company will take to ramp up its revenue.

Trump Media's Truth Social platform has been posting low user engagement and monetization metrics, and it's unclear whether its push into the streaming space will be a sales driver that can get the business on a long-term path to profitability. Without a more solid outlook on how the company plans to build its business fundamentals, Trump Media will likely continue trading like a meme stock and see momentum-based valuation trends.

Should you invest $1,000 in Trump Media & Technology Group right now?

Before you buy stock in Trump Media & Technology Group, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trump Media & Technology Group wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $874,051!*

Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.

Learn more »

*Stock Advisor returns as of January 21, 2025

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.

Recommended Articles

Bitcoin falls below $75,000 as the CLARITY Act fails in the Senate — what the vote means for crypto The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Author Suzie

Sep 16, Wed

The US Senate blocked the Digital Asset Market CLARITY Act in a 49-50 procedural vote, sending Bitcoin briefly below $75,000 — its biggest one-day drop since June. Ethereum fell more than 8%, Coinbase slid 10% and $75 billion of crypto market value evaporated. Here is what the vote was, why it failed, and the levels that matter now.

Dollar index tops 100 for the first time since July as the Fed's hawkish dot plot sinks in The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Author Irene Q.

Sep 17, Thu

The U.S. dollar index broke back above 100 for the first time since 31 July after the Fed delivered its first rate hike since 2023, with the dot plot showing 16 of 18 officials expect at least one more increase this year. Here are the levels that matter for DXY, the currencies feeling it most, and what to watch next.

Gold ends three-week slide at the $4,400 line — eight straight days of ETF inflows vs a 5% 10-year and a 100 dollar Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Author Suzie

Sep 20, Sun

Spot gold closed Friday at $4,378.39, up 0.84% on the day and about 0.8% for the week — its first weekly gain in four weeks — with the intraday high of $4,399.67 leaving it 33 cents shy of the $4,400 line. Gold ETFs have now logged eight straight sessions of inflows, but with the 10-year back above 5% and the dollar index near 100, here is what decides whether this is a reversal or a bounce.

Gold Price Forecast: Gold Eyes Key $4,400 Resistance as Falling Oil Prices Ease Inflation Pressure As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Author TradingKey

Sep 21, Mon

As of the Asian session on September 21, gold prices (XAUUSD) maintained high-level consolidation intraday today following a strong rebound last week, with the latest price trading around

Dollar holds above 100 near a 3-month high — three Fed speakers and a $69 billion auction land tonight The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Author Suzie

19 hours ago

The dollar index closed at 100.43 on Monday, its highest close since late July, after a weekly gain of about 1% — the best in more than three months — and is holding above the 100.00 handle in Asia. Three Fed officials speak tonight alongside a $69 billion two-year note auction, the first leg of $183 billion of Treasury supply this week.

Popular Symbols