Latest news with #TrumpMedia&TechnologyGroup
Yahoo
2 days ago
- Business
- Yahoo
Why Trump Media Stock Crashed This Week
The company announced it is raising $2.5 billion to purchase Bitcoin. Institutional investors will receive $1.5 billion in common stock as well as $1 billion in convertible notes. 10 stocks we like better than Trump Media & Technology Group › Shares of Trump Media & Technology Group (NASDAQ: DJT) are falling this week. The company's stock had plummeted 16.7% at 2:16 p.m. ET. The fall comes as the S&P 500 index has risen 1.4% and the Nasdaq-100 index has risen 1.1%. Trump Media announced on Tuesday that it is pursuing a new strategy of Bitcoin accumulation. The company is raising $2.5 billion in a private deal to create what will be the largest Bitcoin reserve held by a private company. Following in the footsteps of Michael Saylor's Strategy, Trump Media is betting a massive reserve of Bitcoin will drive future value. The company announced it is raising $2.5 billion through a private placement in exchange for $1.5 billion in common stock and $1 billion in convertible notes. The proceeds will go to purchasing Bitcoin, which the company will then hold as a core Treasury asset. Custodial services will be provided by Anchorage Digital and The announcement was made as the Bitcoin 2025 Conference kicked off in Las Vegas. CEO Devin Nunes pitched the move not just as a way to drive value, but as a political one, saying that holding Bitcoin is a hedge against "financial discrimination" and calling it "the apex instrument of financial freedom." Trump Media has a market cap of nearly $5 billion, despite sales last quarter of just $820,200. It is operating deep in the red with no clear path to profitability or sales growth. This stock is built almost entirely on hype, in my opinion, and investors would do well to stay away. Trump Media wasn't a good investment before today's announcement, and it is not one now, as the deal will likely dilute existing shareholders' portfolios. Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Trump Media & Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Trump Media Stock Crashed This Week was originally published by The Motley Fool
USA Today
3 days ago
- Business
- USA Today
Is Trump Media stock a buy after dropping over 50% from its 52-week high?
Is Trump Media stock a buy after dropping over 50% from its 52-week high? Show Caption Hide Caption What is 'TACO trade,' a new phrase angering President Trump? 'TACO trade' is a jab at President Donald Trump's propensity to impose or threaten tariffs and later back off. Perhaps no stock's performance is more impacted by President Donald Trump's actions than Trump Media & Technology Group (NASDAQ: DJT). Although the Trump administration's recent tariff policies affected the entire stock market, Trump Media has specifically stated its success depends in part on President Trump's popularity. This has played out in Trump Media's share price, which zoomed up to a 52-week high of $54.68 just days before the presidential election. But economic uncertainty fueled by inflation and further impacted by the dynamic tariff situation sank the company's stock. At the time of this writing, its share price is less than half what it was before Donald J. Trump's election win. Does this bring Trump Media shares into buy territory? Or do reasons exist to avoid the stock? Let's dig into the company to find out. Trump Media's business performance Trump Media relies entirely on revenue from digital advertising run on Truth Social, its social media platform. The company also provides consumers a streaming video product, Truth+, and recently announced a financial offering called However, by the end of the first quarter, neither Truth+ nor had produced income. Trump Media's sole source of sales, Truth Social, delivered $821,200 in Q1 revenue, a 7% increase from the prior year. This is a promising start to 2025 since the company ended 2024 with a 12% year-over-year decline in sales to $3.6 million. In addition, Trump Media boasts a strong balance sheet. Total assets were $918.9 million compared to $27.2 million in total liabilities at the end of Q1. The company has amassed a war chest of $759 million in Q1 cash, cash equivalents, and short-term investments. But that's where Trump Media's strengths end. Areas of concern with Trump Media An investment in Trump Media carries several outsized risks. Perhaps the biggest is that 93% of its revenue comes from a single customer. If that client decides to leave, Trump Media's income collapses. Also, the company is standing on shaky financial ground. Trump Media is not profitable, with a Q1 net loss of $31.7 million. This is because its Q1 operating costs totaled $40.4 million. But a greater issue is the tepid revenue generated from Trump Media's offerings. Truth Social's sales aren't covering its expenses, so it's crucial for the company's new Truth+ and products to provide income soon. Another concern is that Trump Media noted in its Q1 earnings report that there existed "material weakness in our internal controls over financial reporting," and it lacked "accounting personnel who have the requisite experience in [Securities and Exchange Commission] reporting regulation." This means its financial statements could contain errors and, depending on the extent of those mistakes, may lead to a misrepresentation of Trump Media's finances. Although the firm is working to address this issue, the integrity of its earnings reports is questionable at this time. Making a decision on Trump Media stock Trump Media is in a precarious predicament, given the high costs of operating its business relative to the meager sales it's bringing in. However, its emerging products might deliver the revenue Trump Media desperately needs, and its excellent balance sheet can sustain the company while these products build up their income streams. So, does the company's substantial stock price drop from its 52-week high tip the decision toward purchasing shares? Answering this question requires assessing whether its stock valuation is reasonable. You can gauge this with the price-to-sales (P/S) ratio, which tells you how much you're paying for every dollar of revenue the company earned during the trailing 12 months. This metric is commonly used to evaluate stocks for unprofitable businesses, such as Trump Media. Over the past year, the company's P/S multiple has undergone wild swings. Although it's not at its peak at the time of this writing, it's still exceedingly elevated, suggesting the stock is overpriced despite falling more than 50% from its high. Given a pricy stock combined with significant risks, such as the potential for financial reporting errors and reliance on a single customer for nearly all its revenue, Trump Media shares are not a good investment at this time. Perhaps the company deserves another look if its Truth+ and products eventually generate sales. For now, there aren't enough compelling reasons to buy Trump Media stock. Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool is a USA TODAY content partner offering financial news, analysis and commentary designed to help people take control of their financial lives. Its content is produced independently of USA TODAY. Should you invest $1,000 in Trump Media & Technology Group right now? Offer from the Motley Fool: Before you buy stock in Trump Media & Technology Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Trump Media & Technology Group wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider whenNetflixmade this list on December 17, 2004... if you invested $1,000 at the time of our recommendation,you'd have $639,271!* Or when Nvidiamade this list on April 15, 2005... if you invested $1,000 at the time of our recommendation,you'd have $804,688!* Now, it's worth notingStock Advisor's total average return is957% — a market-crushing outperformance compared to167%for the S&P 500. Don't miss out on the latest top 10 list, available when you joinStock Advisor. See the 10 stocks »
The Sun
4 days ago
- Business
- The Sun
Crypto has 'champion' in White House with Trump, says Vance
WASHINGTON: Cryptocurrencies have 'a champion and an ally' in US President Donald Trump, Vice President JD Vance said Wednesday, adding that the administration would end a 'weaponization' of regulations against the community. Speaking at a bitcoin conference in Las Vegas, Vance also said the Trump administration sought to create a 'pro-growth legal framework for stablecoins in this country.' This refers to tokens pegged to stable assets such as the US dollar to prevent drastic fluctuations. Vance's comments came a day after Trump's media company said it would raise around $2.5 billion with an eye to creating a 'bitcoin treasury.' Trump Media & Technology Group, which operates the Truth Social site, said in a statement Tuesday that cryptocurrency will be a key part of its assets. Trump last week also hosted a dinner for hundreds of top investors in his crypto memecoin, while sign-holding protesters outside the event and Democratic opponents blasted the event as blatant corruption. The unprecedented melding of US presidential power and personal business took place at Trump's golf club outside Washington. Vance told the bitcoin conference, at which he was keynote speaker, that 'we reject regulators,' taking aim at former Securities and Exchange Commission chairman Gary Gensler, who pursued aggressive enforcement against the crypto industry. Gensler launched lawsuits against major trading platforms including Coinbase, Binance, and Kraken, along with various smaller startups. Vance expressed an aim of enacting a regulatory framework for digital assets that is 'pro-innovation and fully incorporates crypto' into the economy. 'We want our fellow Americans to know that crypto and digital assets, and particularly Bitcoin, are part of the mainstream economy and are here to stay,' he said. Trump's adult sons, Donald Jr. and Eric, were also due to speak at the event in Las Vegas. The president's newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his sons. Their growing portfolio includes investments in Binance, a major crypto exchange whose founder is seeking a presidential pardon to re-enter the US market. Lawmakers recently advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins, with the legislation clearing a procedural vote.
The Sun
4 days ago
- Business
- The Sun
Trump Backs Crypto, Vows Pro-Bitcoin US Regulations
WASHINGTON: Cryptocurrencies have 'a champion and an ally' in US President Donald Trump, Vice President JD Vance said Wednesday, adding that the administration would end a 'weaponization' of regulations against the community. Speaking at a bitcoin conference in Las Vegas, Vance also said the Trump administration sought to create a 'pro-growth legal framework for stablecoins in this country.' This refers to tokens pegged to stable assets such as the US dollar to prevent drastic fluctuations. Vance's comments came a day after Trump's media company said it would raise around $2.5 billion with an eye to creating a 'bitcoin treasury.' Trump Media & Technology Group, which operates the Truth Social site, said in a statement Tuesday that cryptocurrency will be a key part of its assets. Trump last week also hosted a dinner for hundreds of top investors in his crypto memecoin, while sign-holding protesters outside the event and Democratic opponents blasted the event as blatant corruption. The unprecedented melding of US presidential power and personal business took place at Trump's golf club outside Washington. Vance told the bitcoin conference, at which he was keynote speaker, that 'we reject regulators,' taking aim at former Securities and Exchange Commission chairman Gary Gensler, who pursued aggressive enforcement against the crypto industry. Gensler launched lawsuits against major trading platforms including Coinbase, Binance, and Kraken, along with various smaller startups. Vance expressed an aim of enacting a regulatory framework for digital assets that is 'pro-innovation and fully incorporates crypto' into the economy. 'We want our fellow Americans to know that crypto and digital assets, and particularly Bitcoin, are part of the mainstream economy and are here to stay,' he said. Trump's adult sons, Donald Jr. and Eric, were also due to speak at the event in Las Vegas. The president's newfound enthusiasm for digital currencies has expanded into multiple ventures led primarily by his sons. Their growing portfolio includes investments in Binance, a major crypto exchange whose founder is seeking a presidential pardon to re-enter the US market. Lawmakers recently advanced a landmark bill known as the GENIUS Act that proposes a regulatory framework for stablecoins, with the legislation clearing a procedural vote.
Yahoo
4 days ago
- Business
- Yahoo
Trump's control over Truth Social could weaken as new shares are issued
The election of Donald Trump provided a big boost for Bitcoin, as the incoming president promised to make the U.S. 'the crypto capital of the planet.' But when Trump Media & Technology Group announced on Tuesday it was investing $2.5 billion in a Bitcoin reserve, his company's stock plunged 10%. It has recovered slightly since, but is still at its lowest point in the past month. That's likely because in diluting the Trump family's share of the company's stock below 50%, the Trumps could be outvoted. The company — which owns Truth Social, the social media site launched in 2022, a year after the Jan. 6 insurrection — has never made a profit. Before it went public in March 2024, Donald Trump owned 90% of the company. Since returning as president, he put his shares in a 'revocable trust,' in the name of his son Donald Trump Jr., with 114.8 million shares in Trump Media before Tuesday's announcement, which adds 58.3 million shares to the issuance plan. The company does not have a separate share class with voting rights, which now puts Trump control of Trump Media in jeopardy. Earlier this month, Barron's reported that Trump Media's CEO, former California congressman Devin Nunes, 'was awarded $47,640,469 in stock and cash compensation last year, when the company's revenue was $3,618,800. That put Nunes' compensation at 13 times annual revenue.' This time last year, Trump Media was considered a meme stock. In Q1 2025, the company posted a net loss of $31.7 million, with operating costs of $40.4 million, though revenue was up 7% year-over-year. That was a bump after its 2024 ended with a 12% year-over-year decline. Last October, Trump Media expanded beyond Truth Social to launch a video streaming service, Truth+, 'where you can watch the news you trust and shows and movies that Big Media has tried to blacklist,' according to the company's website. Earlier this year it launched a financial services platform, For the latest news, Facebook, Twitter and Instagram. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
