Shares of Trump Media & Technology (NASDAQ: DJT) fell 18.1% this week, according to data from S&P Global Market Intelligence. The holding company for the Trump family media businesses reported earnings earlier this week, posting large losses on its cryptocurrency assets as it searches for a business model. Shares are now down 87% from the time of Trump Media's merger with a special purpose acquisition corporation (SPAC) in March of 2024.
Here's why shares fell this week, and whether now is a good time to buy the dip. This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » On August 10, Trump Media & Technology reported its Q2 earnings. The company generated just $1.7 million in revenue in the quarter, mainly from advertising on the Truth Social platform.
However, it had a net loss of $238 million, mainly due to the decline in digital cryptocurrency assets held on its balance sheet, such as Bitcoin. The company has two new initiatives for the rest of this year. First is the merger with a nuclear fusion company called TAE Technologies, which it expects to close later this year.
This is a peculiar merger, as it is a deep technology start-up that generates close to zero revenue and is working on a technology that has never been solved before. Second, the company is trying to sell investment firms the Truth+ API for upwards of $100,000 a month, which would give immediate access to President Trump's posts on the platform. The service is already being scrutinized closely by the media and courts, as it appears to be a way to sell potentially market-moving information before the wider public sees it.
The stock still has a market cap of $2.3 billion and barely any business model today. It has cash and cryptocurrencies on the balance sheet, but the net book value is still around half of where the shares trade today. Add it up, and investors would be smart to avoid buying the dip on Trump Media & Technology stock today.
Extract — continue reading at the source.
