It was bad news today for Truth Social (NASDAQ:DJT) investors, as shares of the social media platform plummeted to open the week. Indeed, they were down nearly 10% during Monday afternoon’s trading session. So, what prompted the latest screaming downturn? Well, it’s not immediately clear. Investors got a whiff of panic and bolted for the doors. The immediate culprit is likely the polarizing nature of the stock itself; surely, the ticker symbol alone will prove triggering to at least some potential buyers since it’s former President Trump’s initials.
But another report emerged noting that Congressional Republicans aren’t buying in. So far, only two lawmakers—Rep. Larry Bucshon (R-Ind.) and Rep. Marjorie Taylor Greene (R-Ga.)—have picked up shares. And reports even noted that Greene—one of the former president’s biggest enthusiasts in Congress—has already dropped her shares, perhaps sensing potential trouble ahead.
The Latest “Meme Stock?”
Others, meanwhile, are convinced that Truth Social shares are just the latest in a line of stocks that aren’t trading on fundamentals, potential, or their industry. Rather, they trade simply because they have a lot of interest in them like GameStop (NYSE:GME) did during the pandemic. By some reckoning, Truth Social is just a new “meme stock,” with some staggering losses and not much to recommend outside of the sheer force of its founder’s personality. While Truth Social might ultimately prove a force in social media, it’s still a gamble at this point.
Is DJT a Good Stock to Buy Now?
Turning to Wall Street, a look at the last five days of trading for DJT stock shows a fairly rapid decline as shares have lost 30.58% of their value. This is a bit misleading, though, as shares are actually up 177.26% on a one-year graph, which suggests profit-taking from highs rather than a catastrophic race to the bottom.
