Retail traders appear to have taken a downbeat stance on Trump’s media company amid its fundamental troubles and in general disgruntlement over geopolitics following his reelection.
- TMTG stock is down more than 68% this year.
- The Truth Social platform, launched in April 2022, has struggled to grow its user base.
- The company has since then diversified into cryptocurrencies, streaming and prediction markets.
Shares of Donald Trump-owned Trump Media & Technology Group Corp. (DJT) trended on Stocktwits, but retail mood toward the Truth Social parent remained downbeat. TMTG stock is down more than 68% this year, even as the Global X Social Media ETF (SOCL) has gained 27%.
Losing Streak Continues
TMTG stock has been on a six-session losing streak amid the recent artificial intelligence-led market pullback and has dropped to an all-time low. The stock has traded between $10.32 and $43.46 over the past year. Since its March 2024 Special Purpose Acquisition Company (SPAC) listing, TMTG has lost more than 80% of its value.
The Sarasota, Florida-based company’s social media business continues to flounder amid competition from legacy social media companies. The Truth Social platform, launched in April 2022, has struggled to grow its user base despite its owner, Donald Trump, being reelected and actively using the platform. The company has since then diversified into cryptocurrencies, streaming and prediction markets.
What Retail Traders Feel
Retail sentiment toward TMTG stock among users of the Stocktwits platform remained ‘extremely bearish’ as of early Wednesday, but the message volume perked up to ‘extremely high levels.
Discussions on the stream centered on the president, as most users had a field day discussing the Epstein files and the Saudi Arabian investments announced on Tuesday, which some called improbable given the size of the pledged funds, nearly equal to the country’s GDP.
The House and the Senate have passed the Epstein Files Transparency Act and the president has said he will sign it into law. Following the enactment, the Department of Justice (DOJ) will have 30 days to release all files publicly.
Trump was also criticized for claims that the prices of consumables are falling ahead of the key holiday season.
On the corporate side, a slew of company insiders, including CEO Devin Nunes, Chief Technology Officer Vladimir Novachki, CFO Phillip Juhan, General Counsel Scott Glabe and Director Eric Swider, have all filed for the proposed sale of securities of the company since mid-November.
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