Donald Trump’s NASDAQ-listed media and tech company, Truth Social (DJT), holds about 50% of its net worth, valued at $4 billion. However, despite speculative fervor surrounding Trump’s celebrity status, the stock remains highly overvalued and unrealistic.
DJT posted only $3.4 million in revenue over the last 12 months but carries a market cap of $6.6 billion, largely inflated by marketing hype rather than financial performance. The company’s primary asset, Truth Social, has just 2 million monthly active users, making it a relatively puny competitor in social media.
For speculators, DJT’s upside potential is driven by Trump’s celebrity status and the hope that he will push financial access and crypto acceptance into total ubiquity while pocketing the profits. However, this approach comes with significant risks, as fundamentals don’t rule the market, and high-multiple stocks can sustain elevated valuations but remain highly vulnerable to volatility.
On TipRanks, the technical sentiment on DJT is skewed to the downside, and short-term entries and exits may be a viable strategy. Ultimately, DJT is a sentiment-driven stock that doesn’t align with many investors’ strategies, making it an ideal speculative investment for those with greater risk appetite.
Wall Street analysts have not issued any public ratings on DJT due to its lack of fundamental support and minimal revenue. However, if Truth.Fi generates meaningful compounded returns, the Trump brand alone adds intangible asset value, which could keep DJT trading at a premium for an extended period. Ultimately, investors should be cautious, as most hypes, memes, and fads tend to come and go rather quickly in the stock market.
Source: https://finance.yahoo.com/news/brace-donald-trump-truth-social-120738037.html