Trading in Trump Media & Technology Group (DJT) was halted in New York on Oct. 15 due to extreme volatility and price swings.
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The company behind the Truth Social platform that’s modeled after X, formerly known as Twitter, saw its share price suddenly plunge without warning in the early afternoon, prompting a five-minute trading halt in the stock.
The share price continued to decline after trading resumed and was down 10% after having been up more than 13% earlier in the day. The exact reason for the big price swing is not known. However, the trading session on October 15 saw extremely high volumes, with more than 76 million shares changing hands.
Treated Like a Meme Stock
Analysts and traders tend to regard Trump Media as a meme stock. Currently, no analysts on Wall Street cover DJT stock, whose ticker symbol is the initials of former U.S. President Donald J. Trump, the largest shareholder in the company. Trump Media has reported abysmal financial results since going public and has seen executive departures in recent months, leading to speculation that the company could file for bankruptcy.
Trump Media stock, which went public this spring via a special purpose acquisition company (SPAC) deal, is prone to big price movements. In the past month, the share price had risen nearly 60%, including a 30% increase in the last five trading sessions. However, the stock is currently 65% below its 52-week high reached in late March, shortly after its market debut.
Is DJT Stock a Buy?
As mentioned, no analysts cover Trump Media stock. However, as the chart below shows, the company’s share price has plunged suddenly and without warning, leading to panic selling among investors and a halt in trading on the Nasdaq exchange.
