DJT, the stock symbol of Trump Media & Technology Group Corp, has been bouncing upwards of late, so I thought I’d review it. First, DJT’s stock chart from yahoo!:
It’s gained some value, and even breached $10/share at one point today, although it finished with a minuscule loss on the day. Seeing that the major indices did not do well today, with the S&P 500 and NASDAQ down more than 1.5%, and the Dow more than 2%, it’s not a bad day’s performance for DJT.
Compared to my last check, too, DJT is doing well. Last time it was at $8.54/sh, so nearly $10/sh is a nice pick-up.
So is it time to plunge all-in?
Me? I won’t. I won’t buy a speck. They do have a new product offering called Truth API. Here’s 24/7 Wall St (via yahoo!):
High-frequency trading firms are paying up to $100,000 a month for a direct API feed to President Trump’s Truth Social posts, according to Wall Street Journal reporting discussed on CNBC Friday morning. Gunjan Banerji, the Journal’s lead markets writer, walked through the mechanics of the arrangement and explained why algorithmic traders view the fee as a cost of doing business rather than a discretionary spend. …
Banerji framed the stakes in the smallest possible time unit. “For the high frequency traders, the types of firms that are subscribing to this data, nanoseconds matter. We’re talking billionths of a second can make a difference in terms of their profits or losses,” she said. Algorithmic desks that trade equities, Treasury futures, currency pairs, and index derivatives can capture or lose meaningful spreads on a single Trump statement about tariffs, sanctions, or personnel.
Let’s skip my objections to high speed trading, which I do not regard as investing, but as parasitism. For me, Truth API is DJT is selling fast access to a failing product, that being President Trump, which may lose its value at any moment. For example, if impeachment proceedings are successful, and a conviction follows, then President Trump reverts to being Donald J. Trump, the guy with a mouth and bad judgment. This might happen before mid-terms, although after mid-terms is more likely. There are other scenarios of similar nature. What is the value of Truth API then?
Sure, it might retain value, but that’s not how I’d bet on it. Mr Trump has been losing respect ever since he resumed office, and I do not see long-term value in this or any other offering of DJT.
But that new product offering may be what’s caused the value to pop in the short term. Or it could be a few other motivations, such as market manipulation by an international ally of the President’s. But don’t look for this to begin climbing to that IPO sale price, and I remain skeptical that there’s any value in their expected merger with TAE. I just don’t see it. Nor do I see their “cryptocurrency treasury” saving them, as $TRUMP and, to a lesser extent, Bitcoin are trending downwards. It seems to be a dark future.
As always, I’m an obsolete software engineer with an opinion, I’m not an investment advisor or financial expert. Find one of those if you need advice.
