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Trump Media Stock Drops 10% to Kick Off the New Administration
President Donald Trump’s social-media stock is dropping in his first hours back in office.
Shares of Trump Media & Technology Group ( DJT ), which owns the Truth Social platform, were recently down 10% at about $36. They’ve mostly fallen since touching January highs above $40 and pre-election highs above $50, though they’re up for the year and well above lows they touched earlier in the fall.
The latest moves come as traders seek to position themselves for the start of a new administration . Since Trump’s reelection, there have been plenty of “Trump Trades” at different times—from bullishness in oil shares, big financial institutions and companies with deals on the table to wariness regarding inflation, vaccine makers and government contracting businesses—and U.S. indexes are broadly higher today .
Cryptocurrency—in the form of bitcoin , memecoins, industry stocks and other assets and baubles—has also attracted attention from investors.
Trump Media’s stock, with a market value nearing $8 billion, is a comparatively small part of the story, though its volatility over the past few months has shown how it can seize investor attention in a meme-stock fashion.
“Watch out for sell-the-news flow action following the [inauguration] on Monday,” VandaTrack analysts wrote last week of movement in Trump Media and crypto stocks. “An ensuing slide in these stocks accompanied by strong retail buying would imply institutional investors front-ran retail traders, using them as exit liquidity, thus leaving prices to muddle through thereafter.”
Read the original article on Investopedia