Unless you have lived under a rock in the past year, you know that there is a man who is planning to change everything. Whether it concerns cultural activities, business balance bells, national budgets or even international capitalism, Donald Trump has an unprecedented influence on the financial arena and all market participants. Whether you love him or hate him, the all-victory former former Tycoon is now the most powerful man in the world, the preparation of policy initiatives that can be used to the same extent to the same extent as the Marshall plan. The same man happens to be co-owner of a Nasdaq-raised media and technology company called Truth Social (DJT) while serving his second term as American president.
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What are the chances that these shares offer upside down for investors in the short term or value for long -term investors?
Surprisingly, about 50% of Donald Trump is connected in Trump Media & Technology Group Corp. (DJT), also known as Truth Social, or TMTG. Trump’s total importance in DJT is worth around $ 4 billion. Although DJT shares have a clear heading, powered by speculative zeal around Trump’s celebrity status, I remain neutral in the investment because the underlying company is very overvalued and unrealistic.
Truth Social (DJT) Price history in the past 5 years
And that is precisely the point: DJT is a purely politically motivated sentiment-driven special game on one of the most iconic political figures of history. The idea is that despite the horrible performance statistics that are based on DJT, the position and influence of Donald Trump will protect the value of the shares, regardless of everything else – simply because he is the US president and has the power to do this.
In the past 12 months, DJT has only achieved $ 3.4 million in income, but has a market capitalization of $ 6.6 billion – an appreciation unmistakably inflated by marketing hype instead of financial performance. Broadly speaking, the basic principles of this share are terrible – from the perspective of an accountant. DJT shares are currently being assessed as an underperform and scores 1 of 10 on the smart score of Tipranks.
Truth Social (DJT) Debt for the history of assets
From the perspective of a Pro-Trump investor, the inflated appreciation of DJT and Balans Malaise can be reconciled with the battle of a pen and the publication of a press release from the US President or his entourage.
Trump has made strong political movements, including securing the return of Hamas’s hostages, insist on peace negotiations in Ukraine and maintaining a stable but strong relationship with China. However, political success guarantees a success for DJT shares – unless the market continues to push its price based on sentiment instead of content.
The primary active of the company, Truth Social, has only 2 million monthly active users, a fraction of the 600 million on X or the 3.98 billion on the Meta platforms – making it a relatively void competitor in social media.
Furthermore, DJT is also planning to extend to financial services with Truth.fi, a fintech brand that offers investment products that focus on cryptocurrencies. Although this company can unlock considerable advantage, it remains very speculative. That said, Trump’s connections with prominent technical figures, such as Elon Musk and other billionaire entrepreneurs, DJT’s financial arm could ultimately turn into something more substantial.
The proposed push in ETFs is an excellent example of potential price catalysts who come on the track for DJT. For bullish speculators, the hope that Trump and Musk Financial Access and Crypto acceptance are pushing to total omnipresence, while they have caught huge rewards for themselves.
Currently, the DJT price campaign is inextricably linked to the news cycle and the political activities of Trump instead of the basic principles of the company. In October 2024, for example, DJT rose 130% purely on the optimism of investors on Trump’s election perspectives. After the elections, however, the shares had difficulty maintaining its profit-a sign of caution on the market with regard to its long-term investment case.
The real turning point for DJT could be his financial division. As truth.fi generates meaningful compound returns; Sentiment-driven investors will realize that there is still value in DJT. In addition, if Trump continues to mediate geopolitical stability and remains very visible alongside power players such as Larry Ellison, Rupert Murdoch, Sam Altman and Elon Musk, the momentum of DJT could be kept purely on sentiment and brand value.
It is no secret that we are in an era where Fundamentals do not rule the market. Although Fundamentals remain the ultimate motivation of the long -term value, we see shares with massive valuation multiples for longer periods without a single profitable dollar to show it. Trump’s startup can still support multiples with high valuations, simply because Trump is the most famous person on the planet with a talent for surprising everyone. This makes DJT an ideal speculative investment but to convert the sentiment into sustainable long-term value, the arm must provide financial services.
High multiple shares can support increased ratings, but remain very vulnerable to volatility, in particular in response to macro-economic conditions and operational setbacks. Timing is the key to potential DJT investors, with short-term entry and outputs possibly a feasible strategy. To get into the price shells that will probably follow this year, however, will be precarious.
From a technical perspective, DJT now looks moderate bearish. The 50-day advancing average has surpassed the 200-day advancing average, which will be indicated in the short term in the short term. However, the relative strength index (RSI) is approaching 40, indicating that the stock is under sales pressure. Better access points can come forward in the short term. On Tipranks, the technical sentiment on DJT is crooked to the disadvantage.
Technical analysis sentiment for truth social (DJT) shares
Ultimately, DJT is a sentiment-driven share that does not match my investment strategy. I try to allocate capital to very productive companies with strong cash flows and reasonable ratings with regard to their fundamental performance. For people with a greater risk appetite than me and those who want an exciting access to political intrigues through the stock market, then DJT might just be the ticket. Assign a small part of a person’s portfolio to DJT, simply for the joyride can rely on politically astute speculators.
Wall Street analysts have not issued public ratings on DJT, especially since the company has generated minimal income and substantial losses since the beginning. The last profit and loss account reports $ 3.4 million in a turnover of 12 months and a net loss of $ 372.4 million.
Given the speculative nature and lack of fundamental support, the extreme market volatility of DJT has held the Wall Street priority list, since analysts focus on more established companies.
Although Truth Social is missing a considerably growth potential, Truth.fi has a real chance to create value in the long term if it is performed correctly. The Trump brand alone adds intangible assets value, so that DJT could act a premium for a longer period.
In addition, if Trump fulfills and changes its promises, the way in which America is active, including the legitimacy of cryptocurrencies, stimulating the domestic American labor market, protecting domestic industries, fastracing AI infrastructure and financing large-scale construction projects , the potential rewards of those companies could be immensely, for the US as a nation, the man himself, DJT as a company and DJT investors to start up. Winners around.
However, the value of DJT is far too intangible for value beleggers like me to justify an investment. As the most powerful man in the world, the American president has a huge influence, making DJT a speculative swing for the fences that can ultimately pay for investors. However, it can all change to tears if the results do not match dizzying ambitions – which is often the case in politics and economy. In fact, most hypes, memes and fads often come and come fairly quickly while they remind investors that what looks too good to be true is usually, especially on the stock market.
