Trump Media & Technology Group’s stock is experiencing a resurgence after two days of tumultuous trading. The stock rebounded by 20% in early afternoon trading on Wednesday following a 14% decline on Tuesday, when the company announced a major expansion into streaming. The stock had also fallen by 18% on Monday after the company announced plans to sell millions of extra shares.
Despite its connection to former President Donald Trump, Trump Media has been volatile due to its lack of fundamentals and need for cash. The company is down about 60% from its all-time high, with a market value of just under $3.8 billion, far below its peak of $8 billion when it began trading at nearly $70 a share.
Trump Media has been plagued by extreme swings in net worth due to its close association with the former president and his politically polarizing nature. His name recognition has drawn attention from investors, traders, and the news media, creating a volatile environment for the stock. However, Trump’s net worth has also been affected by his legal troubles, including a criminal trial on 34 felony counts of falsifying business records for his alleged role in a hush money scheme before the 2016 election, to which he has pleaded not guilty.
As investors continue to monitor the company’s progress and navigate through its volatility, they should be cautious as Trump Media lacks the fundamentals to back up its high valuation.