Trump Media & Technology Group (DJT) stock is extending last week’s rally following the company’s announcement that it will merge with fusion company TAE Technologies. The stock jumped 33% immediately after Thursday’s announcement, added another 8% on Friday, and then moved higher in early trading on Monday. In all, shares are up 38% in the past five-day period.
The all-stock deal, valued at more than $6 billion, is expected to close in mid-2026 and signals an abrupt shift in strategy for Trump Media, which primarily operates the Truth Social platform that has failed to turn a profit. Fusion power is considered a futuristic technology to produce electricity without the risks of nuclear power, but there are no commercial plants operating on fusion technology to generate power.
In the wake of the merger, let’s take a closer look at Trump Media stock.
About Trump Media Stock
Trump Media & Technology Group was formed in 2021 and went public in 2024 as part of a special purpose acquisition company (SPAC) merger with Digital World Acquisition Corp. The company has a market capitalization of about $4 billion.
The company promotes itself as a platform “to end Big Tech's assault on free speech by opening up the Internet and giving people their voices back.” It calls the Truth Social platform “a safe harbor for free expression amid increasingly harsh censorship by Big Tech corporations.”
The company also operates a video streaming platform, Truth+, and had previously announced plans to launch Truth.Fi, a financial services and fintech brand.
The stock has been a major disappointment to investors, many of whom bought in with the hope of capitalizing on the popularity of President Donald Trump among conservative voters. The stock is down 58% so far this year — even after its big jump in the last week — and is trading more than 80% off its all-time high. By way of comparison, the S&P 500 is up 16% this year.
Because the company is not turning a profit, the best measure of valuation is the price-to-sales (P/S) ratio. DJT stock currently has an eye-watering ratio of 1,244x, but it could be much worse. The P/S ratio was more than 1,800 earlier this year.
DJT Stock Has Been Losing Money
Trump Media has struggled since going public, posting major losses along the way. In the third quarter, the company reported net sales of $972,900, down from $1.01 million a year ago. Operating costs increased from $24.6 million a year ago to $58.6 million in the most recent quarter, and the company posted a net loss of $54.8 million, or $0.20 per share, versus a loss of $19.2 million and $0.10 per share in Q3 2024.
The company reported spending $1.43 billion in the quarter on the purchase of digital assets — a reflection of Trump Media’s strategy to invest in Bitcoin (BTCUSD). Management said that it generated $15.3 million in realized income during the quarter from options premiums associated with its Bitcoin-related holdings. The company had 11,542 bitcoins at the end of the quarter.
Trump Media also formed a partnership with Crypto.com to invest in Cronos (CROUSD), which is the cryptocurrency used on the Cronos blockchain to pay fees and perform transactions. The company is integrating CRO as part of a reward system on its social media and streaming platforms, and purchased 684.4 million CRO for its balance sheet.
“Trump Media views CRO as a highly innovative asset that will gain widespread adoption as a versatile utility token and a superior medium for secure, instant payments and transfers, and the company positioned itself as both an early adopter and investor in this unique token,” management said in its Q3 earnings report.
How to View Trump Media Stock Now
Trump Media stock isn’t afraid to take chances, but it’s always been a long-shot bet. The company is nowhere close to breaking even as a social media company, and that’s not going to change any time soon. The investment in CRO is equally risky, as is the company’s latest bid to invest in speculative fusion energy.
The best part of Trump Media stock is arguably the investment in Bitcoin, but there are plenty of other ways to invest in the leading cryptocurrency, including direct purchases and Bitcoin exchange-traded funds (ETFs). You can even buy stock in Strategy (MSTR), which has a primary business model of buying and holding Bitcoin, or mining companies such as Marathon Digital Holdings (MARA) or Riot Platforms (RIOT).
The company’s Bitcoin investment isn’t enough, in my eyes, to make DJT stock appealing. I would bet that its current run higher will fade quickly, and investors who currently hold DJT stock should consider taking profits now.
On the date of publication, Patrick Sanders did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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