It’s been a month or so since I last commented on DJT (Trump Media & Technology Group Corp), and a lot has happened since then related to DJT‘s star property, namely Donald J. Trump, President of the United States. Do investors see the future of DJT, in view of the war initiated with Iran by Trump, his reactions to losing the tariffs case in the Supreme Court, as well as as Trump’s behaviors, in a positive or negative light?
It seems negative. On February 8 DJT‘s price per share closed at $11.45, while last Friday, March 20th, investors priced that same share and market close at $8.58, for a 25% drop in value. See here for a current price. Or, as the Wall Street Journal headline explained,
DJT Stock Falls to All-Time Low
I do not see the DJT price and price trend as a prognostication of Trump’s political future. Investors are focused on economic futures, and politics has varying influence on the future of companies, which is sometimes leads to unpredictable results.
But DJT‘s future is inevitably tied up in Trump, and as his popularity wanes further, DJT‘s chief product and potential spinoff material, Truth Social, will continue to lose value. The value of any social media is partially determined by the trustworthiness of its lead participants, and the trustworthiness of the Mendacity Machine, aka Trump, is virtually zero. Only those who see Trump as a ladder to fame and fortune use Truth Social, I rather suspect.
Another headline, this one from 24/7 Wall St, points to another problem:
DJT Is No Longer a Media Company. It’s a Bitcoin Treasury With a Brand
That problem is that cryptocurrencies are losing value. Bitcoin (BTC) coins are now trading at below $70K/coin, well off its TTM (trailing twelve month) high of $124K/coin. It’s been in this range for a while, so it may recover – but I won’t be betting on it. I am still inclined to agree with Mr. Farr:
Richard Farr, chief market strategist and partner at Pivotus Partners, has issued a stark prediction for Bitcoin (BTC-USD), setting a price target of zero for the cryptocurrency.
“Our BTC price target is 0.0. That’s not just for shock factor. It’s where the math takes us,” the strategist said, noting that Bitcoin (BTC-USD) has failed to function as a dollar hedge and instead operates as “a speculative instrument correlated to the Nasdaq.” …
And DJT‘s foray into fusion power? While its potential is great, the required investment is huge and requires immense expertise. Don’t expect a cheapskate like Donald J. Trump, always distracted by cost, to even try to pull it off.
Finally, I’d be remiss if I didn’t echo the observations of many pundits: President Trump appears to be descending into dementia. Listening to some of his press conferences is to try to interpret gibberish, as the jumps from topic to topic morph into meaningless noises. Perhaps his legion of minions should suggest Trump is the second coming of the Delphic Oracle. But it bodes poorly for DJT.
As always, I’m just an investor with an opinion and a mouth. There is no certified financial advice present in this post, nor should it be taken that way.
