Are the ‘floodgates’ about to open on DJT stock?
Trump Media & Technology Group (DJT) is facing a highly uncertain future.
- Trump Media & Technology Group (DJT) is facing a highly uncertain future.
- Even as shares rise, one expert is warning investors to sell while they can.
- Some people who bought into DJT stock earlier have already lost a lot of money on shares.
Things seem to be going from bad to worse for Trump Media & Technology Group (NASDAQ:DJT). As former President Donald Trump’s recent hush money trial continues to drag on, TMTG is facing an increasingly unstable future. While DJT stock is popping so far this week, sentiment from industry experts remains negative.
Notably, one financial sector veteran recently issued a stark warning on DJT stock, urging investors to offload their holdings before Trump starts to sell shares and DJT plunges to new lows. The stock’s poor performance of late only further supports his argument that DJT is destined for a race to the bottom.
Why It Matters
Some investors will likely refuse to abandon DJT stock, as that would mean abandoning Trump. But as the meme stock investing crowd can attest, sticking blindly by a losing stock usually leads to catastrophic losses. As Tobey notes, “Investing successfully means running for cover when the floodgates open.”
Additionally, TMTG’s recent strategy of claiming that DJT stock is struggling because of illegal “naked short selling” isn’t working. Equally concerning, activity on Truth Social appears to be declining as well, even as Trump’s trial gets underway. If the platform can’t grow when users should presumably be turning to it for statements from Trump, what chance of success does it really have? If Truth Social isn’t succeeding, DJT stock is already on its way out.
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