Anyone who invests in, follows, or has merely heard of social media stock Truth Social (NASDAQ:DJT) knows full well that it’s a volatile stock. It’s so volatile that it makes a roller coaster full of nitroglycerine look like a highway in Kansas by comparison. And once again, Truth Social has staged an impressive swing, up over 22% in Monday afternoon’s trading.
The surge comes after a weekend in which several media outlets breathlessly cried doomsday for Truth Social stock, with CNN declaring shares in “free fall” and Newsweek saying that shares were “approaching rock bottom.” Well, apparently, investors took Newsweek at its word and declared it the equivalent of fire-sale pricing because they bought in like crazy. There was little in the way of news to support such a move, although there were some signs of hope.
Signs of Hope
One sign of hope was the recent exercise of stock warrants, which meant a shot of capital into the organization. In fact, these warrants are expected to produce $69.4 million for the organization. Once the Securities and Exchange Commission (SEC) declared the registration statement on the warrants effective, that was enough for the plan to go through.
Meanwhile, another point direct from the Supreme Court might well have crippled the recently-concluded “hush money” trial; the Court declared that verdicts must be unanimous to be effective, which seems at odds with instructions that the case’s judge, Juan Merchan, provided to jurors. This may mean fresh hope for Truth Social investors and serve as reasons behind the sudden surge.
Is DJT Stock a Good Buy Right Now?
Turning to Wall Street, there are still no analysts covering DJT stock, so we turn to the last five days in trading, and they’ve been ramping upward. All of the gains came from today’s developments, as in the four days prior, DJT had been on a somewhat downward trend. Today, however, sparked a massive surge and sent shares up 18.96% during the timeframe.
