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By Hugh Cameron
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Trump Media & Technology Group (TMTG) fell more than 10 percent after the market opened Tuesday, following Monday's inauguration ceremony of President Donald Trump, but investors appear optimistic about the company's long-term outlook under the new administration.
The stock, trading under the ticker symbol DJT, was priced at $35.81 per share shortly after 9:30 a.m., having closed at $40.03 on Friday. Markets were closed Monday for Martin Luther King Day.
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Why It Matters
TMTG, primarily known for operating the social media platform Truth Social, has often seen its Wall Street performance tied to Trump's own political fortunes. The stock experienced a significant surge as results were announced in Trump's favor in the 2024 presidential election.
Experts told Newsweek prior to the election that the price of the stock could be read as a measure of investors' confidence in the odds of a Trump victory over then-Vice President Kamala Harris.
Despite its current premarket dip, many retail investors remain bullish on TMTG's prospects under the new administration, given that Truth Social will remain a key touchstone for political and financial analysts seeking direct announcements from Trump himself.
The volatile stock—which troughed at a post-launch low of $12.56 in September, following the expiry of restrictions on insider selling—remains up more than 17 percent year-to-date.
What To Know
There are around 600,000 investors in Trump Media, according to Reuters, with the president himself holding a 53 percent stake worth $4.6 billion.
Trump has frequently maintained that he won't sell his shares—cited by one investor to Reuters as a reason for their continued confidence in the stock—which are currently held in a revocable trust controlled by his son, Donald Trump Jr.
According to Indian business-focused daily The Economic Times, investors holding over 25 percent of the company's remaining shares are optimistic of a rally in the stock's price under a Trump presidency.
This optimism persists despite the company's recent financial challenges, such as the net loss of $19.2 million recorded in TMTG's most recent quarterly report.
What People Are Saying
TMTG CEO Devin Nunes, following the announcement of the company's quarterly results on November 5: "This has been an extraordinary quarter for the Company, for Truth Social users, and for our legion of retail investors who support our mission to serve as a beachhead for free speech on the internet."
A TMTG investor told Reuters that Trump's return to the Oval Office was a "landmark moment for the stock," adding that Trump Media's momentum "will be unstoppable" once the presidency is in full-swing.
What Happens Next?
According to the Nasdaq website, TMTG is scheduled to release its fourth quarter results and annual earnings report on February 4.
In November, TMTG CEO Nunes said that the company would continue to "explore additional possibilities for growth such as potential mergers," and speculation has grown over whether this could include a potential combination of Truth Social with X, the platform owned by Tesla CEO and Trump ally Elon Musk.
Update, 1/20/2024, 9:37 a.m. ET: This story was updated after markets opened.
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