Editor’s note: This story has been updated with comment from Trump Media & Technology Group.
Donald Trump's political campaign continues to promote the “America First” message, but his media company has reportedly been taking a different approach.
Betraying The ‘America First’ Doctrine?
A whistleblower complaint is raising concerns about Trump Media & Technology Group Corp DJT, alleging that CEO Devin Nunes is leading an “America Last” hiring strategy.
ProPublica reported that the internal complaint alleges Nunes has outsourced jobs abroad, hiring foreign contractors instead of American workers—a contrast to Trump's longstanding pledge to end outsourcing.
The complaint, which ProPublica reviewed, also calls for Nunes’ dismissal, citing mismanagement and growing legal risks. Nunes is accused of mishandling critical company functions and filling key roles with unqualified allies, according to ProPublica. The letter, reportedly from more than half the staff, suggests this leadership is pulling the company away from its mission.
In response to a request for comment, a Trump Media & Technology Group representative said the company intends to initiate legal action against ProPublica, alleging the ProPublica story is defamatory.
DJT Stock Rockets Despite No Revenue
Despite the ProPublica report, DJT stock has been on an incredible run, nearly doubling in value since mid-September. DJT stock is up 143.46% over the past month alone.
As traders bet on Trump's electoral prospects, DJT has solidified its place as a meme-stock favorite. The stock’s rise, which some speculate mirrors Trump's improving betting odds for 2024, is even more remarkable given that Truth Social, the company's flagship platform, generates almost no revenue.
Chart created using Benzinga Pro
Technical indicators paint an intriguing picture for traders. DJT stock is trading above its eight, 20 and 50-day moving averages, signaling bullish momentum. However, its 200-day average suggests caution with a potential bearish signal.
Chart created using Benzinga Pro
While the Moving Average Convergence/Divergence (MACD) is positive at 3.24, it is also flashing warning signs with a Relative Strength Index (RSI) of 68.32, nearing overbought territory.
Will This Drama Derail DJT’s Surge?
With DJT stock hovering at around $30 a share, traders are riding high on volatility.
However, the allegations in the whistleblower complaint could lead to regulatory scrutiny, which might dampen the current stock frenzy.
According to ProPublica, the letter warns that if the board doesn't act, the company could face a full-blown PR crisis, which could impact investor confidence.
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