A meme stock frenzy has taken over the financial world with Donald Trump’s company, Trump Media & Technology Group (DJT.O), at its center. The U.S. president-elect’s social media and streaming company has seen its value skyrocket, driven by retail investors who are determined to never sell their shares.
Whitney Patterson, a 39-year-old mother of three from Pittsburgh, is one of the many retail investors riding the wave. She invested a third of her retirement fund in Trump Media last October and has vowed not to sell her shares, no matter what happens. “I know how important Truth Social is going to be in my lifetime and for my girls’ future,” she said.
The company’s shares have swung wildly over the past year, closing at $40.03 on Friday, up 18% since Election Day. However, this volatility has not deterred retail investors, who are confident that Trump Media will become more valuable as he returns to the White House.
Some of these investors believe they are supporting a “patriot economy” by investing in the company. Others see it as a way to express their support for President-elect Trump’s ideals and beliefs.
Despite the surge in value, Trump Media’s market capitalization remains detached from its business fundamentals. The company reported a third-quarter net loss of $19.2 million on revenue of just $1 million, with a cash balance of $672.9 million.
Analysts say that DJT remains a typical meme stock, traded on speculation rather than fundamental value. “DJT is a loyal retail holder base,” said Matthew Unterman, managing director of analytics firm S3 Partners. “They trade on speculation, opposed to fundamental value.”
As the market continues to assess Trump’s first actions as U.S. president, investors are breathing relief that he did not start his second term with blanket tariff increases. The stock price is expected to remain volatile in the coming months.
The surge in value of Trump Media’s digital token, branded with an image from Trump’s attempted assassination in July, has added another $8.2 billion to the company’s net worth, according to some estimates. However, investors are warned that this token is not an investment and should be treated as a novelty item.
Source: https://www.reuters.com/business/media-telecom/trump-medias-true-believers-bet-stock-surge-presidency-begins-2025-01-20