Trump Media (NASDAQ: DJT) inventory recorded enormous good points throughout 2024’s buying and selling. The corporate’s share worth ended the 12 months up 94.9%, in line with knowledge from S&P Global Market Intelligence. In the meantime, the S&P 500 index’s degree climbed 23.3%, and the Nasdaq Composite index’s degree climbed 28.6%.
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Trump Media inventory began out this 12 months buying and selling below the “Digital World Acquisition Corp.” identify and the “DWAC” inventory ticker. Along with good points linked to the merger of Trump Media & Know-how Group with the Digital World Acquisition particular objective acquisition firm (SPAC), the inventory additionally noticed bullish momentum at the side of the presidential election and Trump’s win within the race.
Trump Media inventory surges on SPAC merger and political tailwinds
Trump Media inventory began 2024 off with some massive good points following his win within the Iowa Republican caucus. On the time, the inventory was nonetheless buying and selling as Digital World Acquisition as a result of the merger with Trump Media & Know-how Group had not been accomplished — but it surely nonetheless surged resulting from expectations the mix would undergo.
Shares then surged on March 25 after it was introduced that the SPAC merger had been accomplished. From that time on, the corporate operated below the Trump Media banner and shares traded below the “DJT” ticker.
Whereas Trump Media’s share worth slumped in the summertime, the inventory began to rise within the fall as buyers and pundits began to suppose that it was turning into extra doubtless that Donald Trump would win the presidential election. The corporate’s share worth soared within the lead-up to Election Day and noticed some extra post-win good points earlier than buyers took earnings and the inventory retreated. However even with a valuation decline after the election, Trump Media inventory nonetheless closed out final 12 months with massive good points.
Why is Trump Media inventory climbing in 2025?
Regardless of a pullback for the broader market, Trump Media inventory has really managed to climb larger throughout 2025’s buying and selling. The corporate’s share worth is up 3.5% throughout the stretch as of this writing. In the meantime, the S&P 500 index is down 0.8%, and the Nasdaq Composite index is down 0.9%.
Trump Media inventory is gaining floor within the lead-up to President-elect Trump’s inauguration. Buyers seem like betting that Trump getting into workplace will open up bullish avenues for the inventory.
However whereas Trump Media has been on a formidable run, buyers ought to in all probability watch out with the inventory as a result of the corporate’s present valuation seems to be largely divorced from its fundamentals. Trump Media presently has a market capitalization of roughly $7.7 billion, however the enterprise has been placing up little in the best way of gross sales.
With its final monetary replace, the corporate introduced that its core enterprise had recorded simply $1 million in gross sales within the third quarter. Engagement on the corporate’s Reality Social platform has been comparatively low, and the enchantment of the platform might be lessened with different social media platforms now adopting extra lax content material moderation insurance policies. So whereas it is potential that Trump’s place as the following president and private model energy might create development alternatives, the inventory seems dangerous proper now.
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