The volatility of Trump Media & Technology Group’s shares reflected during the after market this Wednesday the great bet of investors on the political success of the magnate. Although the business hub seeks to position itself as an alternative to social media, its financial fundamentals still present significant challenges.
The actions of Trump Media & Technology Group (DJT) they rose more than 15% this Wednesday in the after market, but during the round it cut its rise and closed 6% up after the victory of donald trump in the United States elections.
The day before, the stock had a volatile session during market hours on Tuesday, with trading halted by massive selling. Shares quickly erased 15% gains and reversed Monday’s double-digit gain to start the week.
DJT analysis
In September, shares of the company — owner of the Republican candidate’s social media platform, Truth Social — traded at their lowest level since their debut, following the expiration of the widely publicized lockup period.
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Stocks had recovered from their lows, while domestic and foreign betting markets favored a Trump victory. Trump founded Truth Social after being banned from social networks such as Facebook (META) and Twitter, now after a break of about a year.
While Social Truth attempts to compete with established social media platforms, the company’s fundamentals have long been questioned.
On Tuesday, DJT reported third-quarter results after the market closed, showing a net loss of $19.25 million for the quarter, which ended Sept. 30, narrower than the $26.03 million reported in the same period of the previous year.
DJT also reported revenue of $1.01 million, a slight year-over-year decline compared to $1.07 million in the third quarter of 2023. In the past nine months through September 30, revenue has fallen 23% from to the same period of the previous year. Last month, the company revealed that its chief operating officer resigned in September.
Trump maintains about a 60% interest in DJT, making his stake worth billions.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
