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DJT stock volatility to continue as Trump returns to Musk's X

Published 13/08/2024, 11:30
© Reuters
DJT
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Trump Media & Technology Group saw its shares slip in premarket trading, a day after former President Donald Trump made his return to X, the platform formerly known as Twitter, and engaged in a highly anticipated conversation with Elon Musk.

This marked Trump's first post on his X account since August 24, 2023.

Shares of Trump Media & Technology Group Corp (NASDAQ:DJT), the parent company of Truth Social, fell around 2.4% in the premarket trade. The DJT stock closed 5% lower at $24.88 on Monday.

DJT disclosed last week its second-quarter results, revealing a net loss of $16.4 million, with roughly half of the loss attributed to expenses from the company’s SPAC deal. Revenue for the quarter ending June 30 was reported at just under $837,000, reflecting a 30% year-over-year decrease.

An updated regulatory filing from April showed that Trump Media recorded sales slightly above $4 million for the full year ending December 31, with net losses nearing $60 million. The company also cautioned that it expects continued losses amid mounting challenges to profitability.

Since its trading debut in late March, Trump Media's stock has experienced substantial volatility, driven in part by opposing bets from Wall Street traders on the stock’s potential decline.

The DJT stock has lost half its value since mid-May and has dropped more than 40% following a brief surge after the attempted assassination of Trump, the Republican presidential nominee, on July 13.

This decline has resulted in billions in paper losses for DJT’s largest shareholder, Trump himself.

Former President Donald Trump and Tesla (NASDAQ:TSLA) CEO Elon Musk had a friendly chat on X.

Musk asked Trump a series of questions that allowed him to stick to his usual talking points, including on immigration, where Trump promised the “largest deportation in the history of this country.”

The conversation was marked by mutual praise, with Musk stating, “I think we’re at a fork in the road of destiny of civilization... and I think you’re the right path.” Trump expressed his appreciation for Musk’s endorsement, saying, “Your endorsement meant a lot.”

Musk also suggested forming a new presidential commission on government efficiency and proposed that Trump appoint him to it, to which Trump responded enthusiastically, “I’d love it.”

Their discussion, delayed by technical difficulties, spanned topics such as energy policy, climate change, nuclear threats, and immigration.

Trump, who recently resumed posting on the platform, gained around 900,000 new followers by Monday night.

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