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Trump Media (DJT 2.23%) experienced significant stock price increases throughout 2024, closing the year with a notable gain of 94.9%, as reported by S&P Global Market Intelligence. In contrast, the S&P 500 index saw a rise of 23.3%, while the Nasdaq Composite index grew by 28.6% during the same period.
Initially, Trump Media shares were trading under the name of “Digital World Acquisition Corp.” and the ticker “DWAC.” The surge in stock price can be attributed not only to the anticipated merger with Trump Media & Technology Group and the Digital World Acquisition SPAC but also to the political climate surrounding the upcoming presidential election and Donald Trump’s success in the primaries.
Trump Media Shares Rally on Merger and Political Momentum
The stock kicked off 2024 with considerable growth following Trump’s victory in the Iowa Republican caucus. At that time, the merger had yet to finalize, but optimism regarding the transaction fueled investor interest, leading to a price spike.
On March 25, after the SPAC merger was officially completed, shares robustly rallied, marking a new trading era under the Trump Media name and the DJT ticker symbol.
Although the stock faced a downturn in the summer, it began to recover in the fall as market sentiment grew more favorable toward Trump’s chances in the presidential race. The share price saw significant increases as Election Day approached, followed by additional gains after his victory. Even though there was a drop in valuation post-election, Trump Media still ended the year with impressive growth.
Factors Behind Trump Media’s Stock Increase in 2025
Going into 2025, Trump Media’s stock has continued its upward trajectory despite a broader market decline. As of now, the stock price has risen by 3.5%, while the S&P 500 index has dipped by 0.8%, and the Nasdaq Composite index has decreased by 0.9%.
This positive trend appears to be influenced by expectations surrounding President-elect Trump’s inauguration, with investors speculating that his return to office could foster opportunities for growth.
However, potential investors are advised to exercise caution with Trump Media’s stock. The company’s current market capitalization of approximately $7.7 billion raises concerns, especially given its limited revenue generation. In its latest financial report, it was revealed that the firm recorded a mere $1 million in sales during the third quarter. Additionally, engagement on the Truth Social platform remains relatively low, and competition from other social media outlets that have relaxed content moderation practices could further diminish its market appeal. Although Trump’s presidency might create certain avenues for growth, the present valuation of Trump Media suggests significant inherent risks.
Source
www.fool.com