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Trump Media: Brace For Lock-Up Expiration

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Update - Sept. 11, 2024

The debate was clearly rigged, not sure why Trump agreed to a debate with biased ABC media as the moderators. Again though, the stock isn't based on whether Trump becomes President or not. 

  • -Trump Media & Technology (NASDAQ:DJT) shares declined by as much as 11% after the U.S. presidential debate between Democratic nominee Kamala Harris and Republican Donald Trump. According to a CNN instant poll conducted by SSRS, 63% of viewers felt Harris won the debate, while 37% believed Trump was the winner.

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Original article posted on Sept. 2

  • Trump Media faces significant downside risk with the upcoming lock-up expiration, particularly with Donald Trump's large share position and funding needed for the election.
  • The company reported another weak quarter, with revenue below $1 million and rising expenses, highlighting a lack of business progress.
  • Despite launching new ventures like Truth+ and a CDN, Trump Media has not detailed plans for growth or secured new content partners.
  • The stock's valuation is unrealistic given the company's minimal revenue and lack of growth, making the current $4 billion market cap unsustainable.

Since the initial SPAC approval, the whole focus of Trump Media & Technology Group Corp. (NASDAQ:DJT) has been the expiration of the major share lockups from the going public process. The main focus is definitely former President Trump's shares, amounting to the majority of the company. My investment thesis remains ultra-Bearish on the stock following another weak quarter and the large share lock-up expiration in September.

Read the full article on Seeking Alpha. 

Disclosure: No position mentioned. Please review the disclaimer page for more details. 

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