Post-Merger Analysis: Is DJT Coin (DJT) a Viable Investment Despite Trump’s Legal Challenges?

• Investors now have the opportunity to invest in Trump Media & Technology (DJT), the company of former US president, Donald Trump. Its main product, Truth Social, is positioned to compete with X, owned by Tesla (TSLA) CEO Elon Musk.
• DJT made its stock market debut after merging with special purpose acquisition company (SPAC) Digital World Acquisition and trades on the Nasdaq under the ticker “DJT”.
• Despite facing several legal challenges, DJT stock has shown resilience and is currently outperforming the S&P 500. However, the company’s lack of consistent earnings growth is a concern for investors.

Explore the potential of investing in DJT stock, the company of former US president, Donald Trump. Despite legal challenges and competition, the stock is showing resilience and outperforming the S&P 500.

Introduction to DJT

Trump Media & Technology (DJT) is the company of one of the world’s most famous businessmen, Donald Trump. Its main product, Truth Social, is set to compete with X, owned by Tesla (TSLA) CEO Elon Musk. The company made its stock market debut after merging with special purpose acquisition company (SPAC) Digital World Acquisition and trades on the Nasdaq under the ticker “DJT”.

Trump’s Vision for DJT

Trump has boasted that he will offer a “Big Tent” platform as he attempts to take on technology giants such as X, formerly Twitter, and Facebook parent Meta Platforms (META). The company’s main product, Truth Social, is touted as an alternative to Twitter and is now available on Apple and Android devices. In an investor presentation, the firm said it expects Truth Social average revenue per user can grow to $13.50 by 2026 and expects to have 81 million users by then.

Legal Challenges and Resilience of DJT Stock

Despite facing several legal challenges, DJT stock has shown resilience. A grand jury voted to indict Trump last year after hearing evidence he allegedly paid hush-money to porn star Stormy Daniels during the 2016 election. The case is ongoing. However, DJT stock is closely tied to the value of the Donald Trump brand and has showed resilience despite the scandals enveloping the former president.

DJT Stock Performance

So far in 2024, DJT stock is up 211%. However, it previously flashed round-trip sell signals from a consolidation 58.72 and an old cup base entry of 25.85. It also flashed another sell signal by sinking below its 50-day moving average, though it is back above this key benchmark after the firm launched a crusade against short-sellers.

Conclusion

While DJT stock has shown resilience and is currently outperforming the S&P 500, the company’s lack of consistent earnings growth is a concern for investors. Therefore, investing in DJT stock is more akin to gambling than investing at the moment. Despite the challenges, Trump’s success in the GOP primaries has given the stock a massive boost. However, the road ahead for Truth Social is even more challenging with Elon Musk as a competitor.