Presidential candidate Donald Trump’s social media company Trump Media & Technology Group (DJT) posted a large Q3 FY24 loss ahead of the election results. DJT posted a quarterly loss of $19.25 million, lower than the prior year period loss of $26.03 million. Meanwhile, net sales fell 5.6% year-over-year to $1.01 million. Interestingly, DJT shares jumped 10.4% in after-hours trading yesterday on the possible election results.
Finer Details of DJT’s Results
DJT attributed the heavy losses to high legal fees, and research and development expenses. Earnings per share (EPS) came in at $0.10 compared to $0.30 reported in Q3 FY23. This is the third straight quarterly loss for DJT since the company went public in March this year. Revenues are mostly linked to early-stage advertising initiatives on the Truth Social Platform. DJT unexpectedly released its third-quarter results, while its shares were already having a volatile trading session with intermittent trading halts on the Nasdaq.
DJT ended the September quarter with $672.9 million in cash and short-term investments and zero debt. Trump’s media company is strategizing to become a TV streaming platform with Truth+. During the quarter, DJT released Truth+ on the web and launched apps for iOS, Android, and other connected TV systems. The company is also on the lookout for possible mergers and acquisitions to grow its TV business, including in the realm of fintech.
Trump and DJT Prep for Victory
Trump Media & Technology stock had a roller coaster rally yesterday, with its shares rising and falling by huge percentages as Americans voted for their next President. Reports even suggest that short sellers are cashing in on the rally akin to the meme stock frenzy. Towards the end of the day, the election results were inclining toward a possible Trump victory.
In the past month heading toward the election, DJT shares have zoomed over 84%. Shares have also risen recently with speculations that billionaire Elon Musk could acquire DJT and absorb it into his own social media company X. Musk has been one of the biggest supporters of Trump and has poured millions of dollars into the campaign. As part of the campaign, Musk’s decision to cash out $1 million per day for signing a petition in support of the U.S. Constitution even drew regulatory scrutiny.
Is DJT a Buy?
Analysts currently are not tracking DJT stock, as the company is in the early revenue stages. Also, the volatility in DJT shares due to Trump’s campaign rather than company-specific factors could be another reason for analysts to refrain from reviewing the stock.
Either way, it will be an interesting day for Trump and the company as the election results approach. Shareholders must watch out for further volatility in DJT shares today. Year-to-date, DJT stock has gained 93.9%.
Nevertheless, interest from retail investors has jumped tremendously in DJT stock. According to TipRanks’ Stock Investors tool, DJT stock has a Very Positive Investor Sentiment since the number of retail portfolios (of investors using TipRanks’ Smart Portfolio) holding DJT stock has risen by 3.9% in the last seven days and by 20.3% in the past month.
