Trump Media & Technology Group (DJT) is falling today despite Donald Trump’s election win yesterday. After Trump clinched victory over Vice President Kamala Harris, DJT stock initially surged on momentum from the election. Today, however, shares are back to falling and have erased some of their election-day gains. This is likely the result of the previously high momentum dying down, a typical occurrence when a stock skyrockets on a rare event.
What’s Happening with DJT Stock Today?
DJT stock has been trending downward all day and isn’t showing signs of a rebound. As of this writing, it is down 20% for the day after falling this morning and never recovering. Trading has been highly volatile for the past week as election uncertainty has abounded, pushing shades down 12%. But even though Trump has now clinched victory, DJT stock is still struggling to rise.
With Trump being the incoming president, it’s easy to see how Trump Media, the parent company of Truth Social, would be a tempting buy for the Trump-driven economy. While DJT stock will likely rebound as inauguration day draws closer, the company’s long-term growth prospects remain much more uncertain.
Prior to the election results, Trump Media posted a steep Q3 FY24 loss. As Tipranks reporter Sheryl Sheth notes, quarterly losses came in at $19.25 million, better than the previous year’s loss of $26.03 million. Additionally, net sales declined 5.6% year-over-year. These results are hardly encouraging, especially given the strong focus on Truth Social throughout the 2024 election season.
What Should Investors Expect from DJT Stock?
For all its time in the spotlight in 2024, Wall Street analysts have opted against following DJT stock. Since there are no ratings or price targets, it is hard to assess if the stock is Buy, Sell or Hold. This is likely due to its meme stock status, a label it has partially earned due to its highly volatile trading patterns. Investors should expect this to continue even after Trump has taken office. Even if shares capture temporary momentum, they will likely end up falling again, as today’s performance suggests.
