Zinger Key Points
- New 13F filings reveal stakes taken by fund managers in Trump Media & Technology Group.
- The fund positions came before shares fell on Trump's return to X.
Several large, well-known fund management companies bought shares of Trump Media & Technology Group DJT in the second quarter, which comes after the Trump co-founded company made its highly anticipated debut in March.
What Happened: New 13F disclosures for the second quarter show purchases of Trump Media stock; shares have declined about 40% in recent weeks, but has been up over 43% in the past 12 months.
These hedge funds added to their positions in Trump Media & Technology Group Corp. as follows in the second quarter:
Blackrock: Added 2,184,153 shares
Vanguard: Added 2,879,880 shares
State Street: Added 440,164 shares
Charles Schwab Investment Management: Added 265,871 shares
The share positions could have been taken for a number of reasons, including future value creation due to Trump and his potential return to the White House.
The social media stock was added to Russell indexes in July.
Trump Media & Technology shares traded for a low of $22.55 on April 16 and a high of $61 on April 1 during the second quarter.
Did You Know?
- Congress Is Making Huge Investments. Get Tips On What They Bought And Sold Ahead Of The 2024 Election With Our Easy-to-Use Tool
Why It's Important: Shares of the Trump media company have been highly volatile during the 2024 election race and often see spikes up and down related to Trump's position in polls, events such as presidential debates and Trump’s legal troubles.
In recent weeks, shares of the social media company have taken a hit, potentially from Trump's return to rival platform X.
Trump took part in a conversation with X owner Elon Musk that attracted millions of listeners. Trump also posted 11 times on his X account over the past week. The posts were the first by Trump since Aug. 24, 2023, when he shared his viral mug shot and asked for campaign donations.
The former president was previously banned from X, but was welcomed back by Musk after he bought the company.
On X, Trump has 89.4 million followers as of Aug. 15, ranking ninth among all accounts. The reach on X is much greater than the 7.54 million followers as of Aug. 15 Trump has on his Truth Social platform, which is owned by Trump Media & Technology Group.
Trump posted several campaign ads and videos on X that saw millions of views. The potential preference of X or split time between X and Truth Social by Trump could limit the impact his posts and presence on Truth Social have.
Trump Media & Technology Group recently reported second-quarter revenue of $840,000 and a net loss of $16.4 million.
The company also launched a new video platform in the second quarter, which could expand the company's reach and revenue-generating opportunities.
DJT Price Action: Trump Media & Technology shares are up 0.62% to $24.12 on Thursday versus a 52-week trading range of $13.11 to $79.38, counting the trading activity of the SPAC Digital World Acquisition that took the company public.
Since going public, the stock’s lowest trading price has been $22.55.
Shares of the Trump-linked company are down 40% over the past month.
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