Donald Trump’s name elicits strong emotions, both positive and negative. In terms of stock predictions, polarized emotions and a devoted following can cause analysts to throw normal tools out the window, as stock prices can run on emotions rather than logic. Some analysts compare the possible rise of already-overvalued DJT (Donald John Trump) stock to a GameStop 2.0 scenario where zealous supporters drive the price up, even without merit.
On the other hand, there's no denying Trump's business acumen, even if it comes with controversy. Setting aside emotions or ethics, stock price prediction remains speculative. While technical analysis, fundamental analysis, and even AI pricing models can provide insights, no one can predict market movements with 100% accuracy.
But unless the tides turn, it's clear that a significant portion of America is ready to back Trump, which could work well in the stock's favor. Read on for DJT stock price predictions and understand whether it is a good investment ahead of the election and beyond.
Current Overview of DJT Stock
As of July 16, 2024, DJT stock is valued at $36.89, up $19.88 year-to-date, despite criminal convictions and an assassination attempt. While it's still substantially below its 2022 peak and the valuation of nearly $50 at the end of May, the trend is looking up.
With a market capitalization of $7.09 billion, DJT reflects Trump’s large portfolio, including NY real estate holdings, global hotels, TV and book royalties, and other miscellaneous business interests. It also includes Trump Media's main product, Truth Social, an alternative platform to X (Twitter), which is now available on Apple and Android devices.
The assassination attempt on July 13, 2024, may have done more for Trump's business (and presidential prospects) than any other event this year. DJT stock rose over 30% on Monday before settling a bit lower on Tuesday.
On the other hand, Trump's 34 criminal convictions did little to deter supporters or harm the stock's long-term performance. While some experts suggest DJT stock is currently overvalued by as much as 30%, planning to short it wouldn't be a wise move. With so many supporters rallying behind Trump's cause, it's possible the stock could rise, even without strong underlying fundamentals.
Methodology for Stock Price Prediction
Various methods are used for stock price predictions, including technical analysis, fundamental analysis, and expert opinions. When looking at any price prediction, it's essential to consider factors such as market trends, company performance, and economic indicators.
Any one factor taken in isolation is rarely a good indicator of stock movements or used in an investing strategy. However, using multiple analysis tools and expert opinions can help investors assess a stock's short- and long-term investment potential more accurately. You can also speak to a fiduciary stock broker to gain greater market insights and build your personalized trading strategy.
DJT Stock Price Prediction for 2024
In less than one month, Trump’s wealth has quadrupled from approximately $2 billion to as much as $8 billion, just when he needed it most. Whether you love or hate him, there's no denying the good fortune, timing, and luck of this turn of events. When faced with nearly half a billion in fines, his wealth quadrupled. Few, if any, on the planet have experienced that volume of changing fortune.
What underlies the dramatic rise of DJT? By traditional metrics, Trump Media is vastly overvalued. SEC documents show that Trump Media expected monthly active user growth from 58% to 33% for the first four years. It also predicted revenue growth of 90% to 55%.
Expected enterprise-to-revenue multiples ranged from 26.8x to 13.3x for years one through five sequentially. This is 123 times to 273 times more than other social media companies. Based on DJT's current $3.4 million in revenue and expected growth rate of 90%, it would have approximately $6.4 million in revenue for the next period and a market cap of $50 million. DJT has $50.48 million in total debt, giving it a debt/equity ratio of 24.01%, which is generally considered good.
Its actual market cap is $7.09 billion, an approximate overvaluation of over 141x. Could DJT stock drop by 99% and still be considered overvalued by current valuation metrics? Yes. But will it? Unlikely.
As John Rekenthaler, vice president of research at Morningstar, told CNN, “The reason that people own this stock is because, in one way or another, they support Donald Trump. It’s an act of faith.”
According to Rekenthaler, the closest company comparison to Trump Media is Tesla. He said investors backed Tesla because of belief in Elon Musk, which helped drive the company to its 2021 peak.
Technical analysis, including chart patterns and indicators, can also predict stock prices. Benzinga's trading tools offer educational resources and strong charting, which is useful for skilled investors who want to advance their technical analysis.
According to Investors Business Daily analysis, there are inherent problems with DJT stock. While it has seen its Relative Strength Rating rise to 99 out of 99, putting it in the top 1% of stocks in terms of market performance over the past 12 months, it crashed by over 70% in 2022 before ending 2023 up 16.7%, lagging behind the S&P 500 by more than 24.2%.
While it outperforms the benchmark index this year, up 211%, it previously flashed round-trip sell signals from a consolidation of $58.72.
According to Validea's quantitative rating system, DJT received a score of 100% based on the firm’s underlying fundamentals and the stock’s valuation. A score of 80% or above typically indicates that the strategy believes the stock has potential, while a 90% or higher score indicates strong interest.
However, technical analysis requires a high skill level and understanding of charting tools. It also has significant limitations and may give false signals. For that reason, it's essential to combine technical analysis with fundamental analysis.
DJT Stock Price Prediction for 2025
The medium-term market outlook for DJT stock in 2025 indicates relatively stable prices. However, a Trump win later in 2024 could lead to an extra bump in stock prices. According to Coincodex predictions based on charts and trends, while we could see an increase in DJT stock prices in the coming days, the stock will likely settle around $36 per share in 2025.
This year, DJT has reported negative free cash flow, negative operating income, negative net income, and negative ROE. However, it does show long-term solvency, low debt-to-equity ratio, and positive net debt.
DJT Stock Price Prediction for 2030
Based on current price predictors, Trump Media & Technology Group Corp. stock DJT could maintain a price comparable to today's, around $36.89 per share, by 2030. By growth metrics, that’s considered underwhelming.
DJT, in its current form, has data dating back to October 2021. Since its initial offer price jump, it has fluctuated between $94.20 (Oct. 22, 2021) and around $97 in March 2022 before dropping to a low of around $15 to $17 for all of 2023.
As of July 2024, it has a P/E (TTM) of -$12.23 and an EBITDA (TTM) of -$110.425 million, indicating challenges for short- to medium-term growth. The 52-week high was $79.38, while the 52-week low was $22.55.
Frequently Asked Questions
Should I buy or sell Trump Media & Technology Group Corp. Stock?
If you don’t own DJT stock, it’s probably not the time to buy or sell short. If you own the stock, you can ride out the wave and hope for long-term returns or sell now and accept a possible loss. However, as indicated by long-term projections, there’s no guarantee of increased returns in the future, and any investment carries inherent risk. Conduct thorough research before making any investment decisions
What's the current price of Trump Media & Technology Group Corp. Stock?
As of July 16, 2024, Trump Media & Technology Group Corp. Stock is $36.89 per share. For $36.89 of your money, you could purchase a share of DJT.
How many shares of DJT are there?
DJT has 189.94 million outstanding shares.
About Alison Plaut
Alison Kimberly is a freelance content writer with a Sustainable MBA, uniquely qualified to help individuals and businesses achieve the triple bottom line of environmental, social, and financial profitability. She has been writing for various non-profit organizations for 15+ years. When not writing, you will find her promoting education and meditation in the developing world, or hiking and enjoying nature.