Trump Media’s Stock Journey Post-Election

A few weeks prior to last fall’s election, shares of Trump Media & Technology Group saw a significant rise as traders anticipated a Trump return to the White House, banking on a communication platform for his presidential announcements.

Those trading decisions turned out to be quite prescient, though perhaps not as financially rewarding as expected.

Voters have indeed reinstated Trump, and True Social has become the primary avenue for sharing everything from military actions to trade discussions.

Yet, those investing in the company, signified by the ticker “DJT,” are facing substantial losses.

In fact, despite Trump’s election win, shares in his media company have plummeted nearly 48% since Election Day, significantly underperforming against the S&P 500’s 5% rise during the same timeframe. Looking back to the moment Trump took office, the decline deepens further at 56%.

This downturn reflects that much of the stock’s earlier rise relied more on hype and momentum rather than the fundamental strength of the business.

Even though stock values have dropped considerably this year, the media venture remains valued around $5 billion—still substantial and nearly on par with the combined worth of Macy’s and Wendy’s.

However, the foundational aspects of Trump Media seem rather modest.

True Social, which generated merely $821,000 in revenue during the first quarter of 2025, reported a loss of $32 million in that same timeframe.

“By standard metrics, this stock is exceedingly overpriced. The company’s revenue is minimal, and it’s incurring losses,” said Steve Sosnick, Chief Strategist at Interactive Brokers. “But historically, this stock has diverged from conventional valuation standards.”

To bolster stock prices, Trump Media is exploring cryptocurrency ventures and has hinted at a major stock buyback.

The company’s primary offering, a social media platform geared toward conservatives, remains somewhat stagnant, despite its potential for insight into the thoughts and actions of influential figures.

On a positive note, data from SimilarWeb indicates that daily active users of Truth Social more than doubled—up 106% to 359,000—compared to the previous May.

Despite this growth, the platform still significantly trails behind larger competitors like X (formerly Twitter) and Reddit, where daily active users reach exorbitant levels.

Even BlueSky, launched as a competitor to Twitter in 2023, boasts tenfold the daily engagement of Truth Social.

Trump Media did issue a statement dismissing CNN’s portrayal of the company, emphasizing that it has $3 billion in liquid assets.

Nevertheless, the presence of Truth Social in the broader social media landscape remains minimal.

David F. Carr, editor of SimilarWeb’s Insights News & Research, noted, “The audience for Truth Social has expanded since Trump was reinstated, yet it’s still quite small.”

Interestingly, app usage peaked on the day Trump announced military strikes on Iranian nuclear facilities via social media platforms, but even then, it accounted for less than 1% of X’s engagement, while Bluesky attracted millions of visitors.

Even some investors in Trump Media express doubts regarding Truth Social’s potential.

“I don’t really see it growing—nor do I believe it will,” stated Matthew Tuttle, CEO of Tuttle Capital Management and Trump Media shareholder. “That’s why they’ve turned to crypto.”

In fact, Trump Media is venturing into cryptocurrency funded by its liquid capital.

The company has recently filed for regulatory approval to launch an Exchange Traded Fund (ETF) that aims to invest in Bitcoin and Ethereum.

This strategy follows the accumulation of a $2.5 billion reserve to purchase Bitcoin.

However, the shares of existing Trump Media shareholders have been diluted as funds were raised to support the crypto purchases.

This action raises eyebrows among ethical watchdogs, as Trump’s election garnered strong backing from the crypto sector, despite his earlier criticism of currencies like Bitcoin.

Trump appears committed to his promise of establishing a strategic Bitcoin Reserve, looking to engage crypto-friendly regulators.

Post-election, Trump Media’s trust has gained some backing, although Trump himself is the sole beneficiary, with the operations led by his son, Donald Trump Jr.

Devin Nunes, Trump Media’s chairman and CEO, has embraced the push into cryptocurrency and financial technology.

“We plan to transform Trump Media into a key player in the burgeoning patriot economy,” Nunes stated earlier this month.

However, skepticism remains among investors.

“Does the ETF’s association with Trump inspire confidence? There’s definitely some trepidation,” Tuttle remarked. “They’re venturing into Crypto Treasury, following the lead of many companies, much like MicroStrategy.”

MicroStrategy is known for its strategy of accumulating cryptocurrencies and incorporating them into its balance sheet. In contrast, as companies like Trump Media face challenges, Tuttle emphasized, MicroStrategy is currently seeing returns from investors.

Recently, Trump Media announced plans to reinvigorate its stock price through a buyback of up to $400 million in its shares.

Sosnick noted, “It seems like they’re merely looking to prop up stock prices.”

Nunes described the buyback strategy as a “vote of trust” in the company and its plans, asserting that Trump Media’s cash reserves provide the latitude needed to ensure strong shareholder returns.

Nonetheless, it’s somewhat unexpected to observe a company relying on stock repurchase strategies just a year later.

Indeed, many of Trump Media’s stories since its inception in 2021 have been particularly unusual.

“If the Bitcoin ETF fails to materialize, and the market doesn’t respond favorably to the ambitious Bitcoin Treasury, there won’t be much left,” warned shareholder Tuttle.

Yet, Tuttle isn’t ready to concede just yet, particularly with Trump still holding office for another three and a half years.

“I’d never count him out,” Tuttle concluded. “Whenever you think he’s down, he seems to rebound even stronger.”