After two days of volatility, investors in Trump Media & Technology Group’s stock are finally seeing a positive change in their shares. On Wednesday, the stock TMTG (DJT) rebounded by 20% in early afternoon trading after falling earlier this week. Although shares closed more than 14% lower on Tuesday following the company’s announcement of a major expansion into streaming, which is a costly business, and on Monday after the company took steps to sell millions of extra shares, investors are starting to see some hope for the future of the company.
Trump Media, majority-owned by former President Donald Trump, has been struggling to make money and needs cash. The company is down about 60% from its all-time high set on March 26, the day after it merged with a blank-check acquisition company to go public. The company’s market value is currently just under $3.8 billion, well below its peak of $8 billion when it began trading at nearly $70 a share.
The volatile nature of Trump Media shares can be attributed to its connection to the former president. His name recognition, politically polarizing nature, and close association with the company have drawn attention from investors, traders, and the news media, creating an unpredictable environment for the stock. Despite this connection to Trump, many investors are cautious about investing in the company due to its lack of fundamentals and high valuation.
In addition to financial struggles, Trump Media has also faced legal challenges for former President Trump’s alleged role in a hush money scheme before the 2016 election. He has pleaded not guilty but faces criminal charges that could negatively impact his ability to lead or influence any future endeavors related to Trump Media & Technology Group or any other businesses he may be involved with.
Overall, while there is some hope for investors in Trump Media & Technology Group as their stocks rebounded after two days of turmoil, there are still significant challenges ahead for both financial stability and legal matters that could impact their future prospects as a publicly traded entity.