Trump Media Technology (NASDAQ:DJT) stock is particularly sensitive to political news. After a bump following the biden announcement DJT stock has returned to its post-announcement numbers.
On July 21, President Joe Biden withdrew from the 2024 race and endorsed Kamala Harris as the Democratic nominee, citing party pressure to do so.
DJT Stock After Biden Drops Out
After the news came, Trump Media and Technology saw a 4% decrease. Trump’s chances of winning fell to 60%, providing Harris with a 40% chance to win.
Notably, DJT stock has doubled this year, but remains a niche social media player amid major tech competitors. Investors often buy DJT stock more because of hype and spin than fundamentals.
Trump Media’s stock dropped 3.9% to $33.34 as Kamala Harris emerged as the likely Democratic nominee. The stock often reflects investor sentiment toward Trump’s reelection probabilities rather than the company’s fundamentals.
As a minor player in the social media space, Trump Media faces competition from major tech firms like Meta Platforms (NASDAQ:META) and X.
On Monday, Harris confirmed she had secured enough delegate support to become the Democratic nominee. According to PredictIt’s data, Trump’s chances of winning dropped more.
DJT Surged After Assassination Attempt
That said, DJT stock has also benefited from recent events as well. Notably, DJT stock surged 31% on its first trading day after an assassination attempt on Donald Trump.
A federal judge dismissed his classified documents case because of concerns about the special prosecutor. The U.S. Secret Service continues to investigate the shooting at Pennsylvania, where Trump was injured and the assailant was killed.
Seen as a major legal theat, U.S District Judge Aileen Cannon dismessed Trump’s classified documents case.
Trump Media & Technology’s stock, known for its wild swings, reacted sharply to events like Biden’s debate performance and Trump’s hush money conviction.
The stock’s volatility reflects the meme stock trend, with extreme highs and lows driven by small investors.
The stock often fluctuates by double digits daily and hit nearly $80 on March 26. Trump Media’s May report revealed a $300 million loss for the previous quarter, contrasting with the S&P 500’s 18% year-to-date gain.
DJT Stock Remains a Solid Sell
In my view, Trump Media is one of those meme stocks with terrible fundamentals that’s simply not worth touching.
Even for those looking to take a short position, the cost to borrow and the options volatility implied by the market is insanely high.
There’s likely little money to be made on either side of this trade. Accordingly, this is a stock I continue to watch happily from the sidelines.
That said, for political aficionados out there, watching this stock closely for clues about how Donald Trump may perform in this coming election will be interesting to watch.
The market tends to be a lot smarter about predicting certain future events. That’s the real value I see in following this stock right now.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) and positions in the securities mentioned in this article.