Trump Media & Technology Group's (DJT) stock fell to a record low last week. The company, which also owns Truth Social, has been sliding despite the S&P 500 Index ($SPX) sitting near record highs. In an article in 2024, when Donald Trump was moving closer to securing the GOP nomination for the 2024 presidential election, I noted that it would be prudent to stay clear of Digital World Acquisition—the special purpose acquisition company (SPAC) that announced a merger with Trump Media and Technology Group (TMTG).
Trump went on to become the 47th U.S. President, and just as with his previous presidency, “Trump trade” was in action this time as well. However, the ultimate beneficiary wasn’t DJT but other names, particularly Tesla (TSLA), which soared following the election. With DJT down over 50% for the year and its market cap below $2 billion, let’s explore whether investors should buy the dip or whether more downside awaits.
