Trump Media & Technology Group (DJT) shares slipped further in Tuesday’s pre-market session, trading down 1.87% at $14.14 following a bruising 10% sell-off on Monday. The volatility comes as the initial euphoria surrounding the company’s landmark $6 billion merger with TAE Technologies begins to face the harsh reality of long-duration energy investing.
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While the stock surged over 50% last week on the news of the company’s shift into nuclear fusion, the Truth Social parent remains down 58% for the year, struggling to find a permanent floor amid high-stakes bets on both Bitcoin and advanced energy.
DJT Merger with TAE Technologies Fueled the Momentum
Last week’s announcement of a merger with TAE Technologies, a privately held fusion firm previously backed by Google (GOOGL) and Goldman Sachs (GS), marked a radical departure from DJT’s origins as a social media underdog. The deal aims to transform Trump Media into a diversified holding company powering the “energy-hungry” AI infrastructure of the future.
Under the terms, the combined entity will split ownership 50/50, with plans to begin construction on a 50-megawatt utility-scale fusion plant in 2026. However, with commercial fusion power not targeted for the grid until at least 2031, investors are increasingly viewing the stock as a speculative “call option” on the next decade’s energy breakthrough.
Bitcoin Volatility and Stretched Timelines Weigh on Valuation
The recent 10% drop serves as a stark reminder of the binary risks inherent in DJT’s new portfolio. Much of the 58% year-to-date decline is attributed to a massive Bitcoin treasury play that soured during the October market crash, leaving the firm with significant unrealized losses.
Analysts warn that the TAE merger may face similar hurdles, as fusion technology typically requires billions in capital and decades of development. If the “fusion frenzy” fades before the mid-2026 closing date, DJT risks losing the speculative momentum that has kept its valuation afloat despite generating less than $4 million in annual revenue.
Traders Eye Holiday Volatility amid Thin Market Volumes
For short-term traders, the wild swings in DJT present a unique opportunity as the 2025 holiday season approaches. With institutional trading volumes thinning, the stock has become a primary vehicle for volatility-seeking retail investors. This “meme-like” behavior allows for rapid entries and exits, as traders attempt to harvest quick gains from the 50% weekly surges and 10% daily retracements.
However, the lack of a fundamental floor near $14 suggests that without a new catalyst, the stock could easily drift back toward the $10 per share mark seen earlier this year.