Truth Social’s (DJT) Mysterious Silence: Is Trump’s Social Network Losing Its Spark?

Since the elections, Donald Trump’s Truth Social (DJT) social network has become rather unusual. Since it launched on the stock exchange, it has generated many conversations and controversy, depending on individual viewpoints. Nonetheless, it has remained a popular stock to write and discuss, usually in a colorful manner, mostly looking for some rationale to explain the stock’s behavior. However, something has been off since November’s elections. DJT has gone under the radar and keeps a low profile. This is very uncharacteristic of its founder’s nature and, subsequently, its social platform.

Usually, we’re accustomed to the stock itself creating the news, but if the mountain doesn’t come to Muhammad, Muhammad must go to the mountain. So here we are, wondering if something has changed in the company’s fundamentals and long-term prospects. As before, the DJT stock seems to have created its own logic and rationale and continues to do so. The conflicting numbers regarding its active users are still there, which can create confusion about the platform’s potential. With that said, let’s explore two key concerns and future possibilities:

• Lack of Fundamentals and Fluctuating Stock: Trump Media & Technology Group has seen its stock price fluctuate significantly, often driven more by Donald Trump’s popularity than by sound financial fundamentals. The company reported only $1 million in revenue for Q3 2024, with a net loss of $19.2 million. Despite this, the stock experienced a 35% surge following Trump’s election win, highlighting its nature as a “belief stock.” This volatility raises concerns about the company’s long-term stability and financial health.

• Investor Concerns: Investors have expressed several concerns regarding DJT stock. Ethical issues have been raised about Trump’s transfer of his ownership stake to a revocable trust, with his son having sole voting power. This arrangement has been criticized for lacking transparency and not addressing potential conflicts of interest. Additionally, the company’s high market capitalization of $7.8 billion is seen as disproportionate to its financial performance, leading to skepticism about its valuation. The company’s growth strategies, including ventures into streaming and fintech, are also viewed cautiously, as their success is not guaranteed.

• Future Possibilities: Despite the challenges, there are potential opportunities for Trump Media & Technology Group. The company has filed a trademark application for TruthFi, a cryptocurrency payment processing platform, indicating an interest in expanding beyond social media. This could diversify the company’s portfolio and open new revenue streams if successful. Additionally, speculation exists about a potential acquisition of Bakkt, a cryptocurrency exchange, which could strengthen the company’s position in the crypto space. These initiatives coincide with Trump’s broader political standings on supporting cryptocurrency and easing regulations on digital assets. Some murmurs also suggest the possible acquisition of Truth Social by Trump’s new boy – Elon Musk. All options are on the table.

• Tipranks’ Smart Score: Another worrying trend in the near term is DJT’s Smart Score of 3, which is equivalent to Underperform. This score is based on decreased Hedge Fund trends but elevated Insider Transactions, meaning $3.8 million shares have been sold during the last three months, probably trying to make the most of Trump’s re-election.

So, What’s New Pussycat?

Not a lot! DJT stock remains as it was: an unpredictable stock in which everything and anything are possibilities. However, the move toward cryptocurrency seems like a move that could bode well with Trump’s beliefs in crypto and the expected deregulation of this currency. But let’s be honest; the only thing we can assume is to expect the unexpected.