After the last several days, when it looked like social media platform Truth Social (NASDAQ:DJT) was on its way to death by a thousand cuts, the contrarians showed, and now, Truth Social is soaring. It hasn’t wiped out its losses by any stretch of the imagination, but it’s up over 15% in Wednesday afternoon’s trading.
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The exact cause of this sudden spike is unclear, but several possibilities have emerged in recent days. There’s the partially successful jury selection in the Stormy Daniels “hush money” trial currently going on in New York featuring Truth Social’s primary shareholder, former president, and current possible new president Donald Trump.
It could also be connected to the Supreme Court taking up a case on presidential immunity that may well render this case, and several others, moot. It may even be connected to recent word about Truth Social’s plan to start up an entire streaming media network that could represent a huge money-making opportunity, the first such effort we’ve heard about in some time.
Dead Cat Bounce?
Considering that the last several days of trading for Truth Social have all featured declines—and double-digit declines for the most part—this sudden reversal proved surprising. That’s got some wondering if this isn’t simply a “dead cat bounce,” a term describing a brief rebound of asset prices after a lengthy downtrend that’s followed by more declines. Depending on the next few days of trading, that point will be proven or disproven, one way or another. And with some calling Truth Social “…a scam,” there’s certainly cause for concern.
Is DJT Stock a Good Buy Right Now?
A look at the last five days of trading for DJT stock shows a significant change. For the first time in those five days, share prices have turned upward. Thanks to this latest uptick, DJT stock is down only 18.66% for the last five days. That’s still a pretty substantial loss, but it’s still the first major gain seen in some time. However, it’s also worth noting that DJT stock is up nearly 100% for the full year, even with the recent losses.
