Make all the jokes you please about the size of Donald Trump’s hands, but they are diamond hands nonetheless. He has no plans at all to sell Truth Social (DJT) stock, and the social media platform’s value shot up over 14.5% in Friday afternoon’s trading.
Rumors began to circulate that Trump was planning to sell off all or part of his majority stake in Truth Social, and by extension, Trump Media. Trump himself made it crystal clear that that would not be a thing. In fact, according to a CNBC report, Trump called for investigations into whoever it was who said as much, because it was certainly not the case. Trump declared the reports in question “…fake, untrue and probably illegal rumors and/or statements made by, perhaps, market manipulators or short sellers…”
And while Truth Social posted a net loss of $19 million on Election Day itself, thanks in large part to it having revenue of only $1 million, the stock has still managed to gain ground as Trump supporters buy into DJT stock.
Not Everyone Is So Optimistic
Of course, there are concerns about Truth Social as a stock. The planned streaming platform is still a bit on the quiet side and was just released about three weeks ago onto Amazon’s (AMZN) Fire TV platform, so there could be some gains there. But a report from Slate expressed concern about Trump’s return to the presidency and its impact on Truth Social.
Calling it “unambiguously horrible,” Slate wondered how long before “…gravity will ever take hold and if Trump will cash out of the stock before it does.” Though Trump seems to be holding, his return to the presidency has made all of his speech effectively political in nature since it comes from a sitting president.
While that is debatable—surely even presidents have private opinions—it may be an issue with the Securities and Exchange Commission, which largely kept out of Truth Social’s way following assurances that Trump would not post content on Truth Social and then on any other platform for at least six hours.
Is Truth Social Stock a Good Buy Right Now?
Turning to Wall Street, there are no analysts who are willing to provide coverage on Truth Social stock. So, we turn instead to the last five days of trading in DJT stock, which is down 1.3%. There was a substantial gain on Election Day itself, but much of those gains were lost over the course of the next three days that followed.
