Trump Media & Technology Group (NASDAQ: DJT), the parent company of social media platform Truth Social, saw a lot of volatility in 2024. DJT stock would rally to incredible highs, only to see those gains erased just as quickly — and this happened multiple times over the course of the last year.
To make matters even more strange (or exciting), Trump Media stock didn’t trade in a way consistent with its fundamentals — instead, price action was largely a reflection of public sentiment surrounding Donald Trump and his 2024 presidential campaign.
On Monday, January 13, despite most of the market being in the red and all of the Magnificent 7 stocks opening below their most recent close, DJT shares saw prices rally by 9.60%, up to $39.29.
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At press time, the price of DJT stock had risen to $41.80, bringing weekly gains up to 22.40%.
This recent surge seems to have been caused, yet again, by news coverage — to be more specific, Trump’s January 20 inauguration is fast approaching, so it is likely that enterprising trades are betting on an even more pronounced rally next week.
The stock peaked at $51.51 at the tail end of October — at present, the chief question is whether or not that hypothetical renewed rally could see the price of DJT stock surpass $50 once more.
DJT hitting $50 isn’t impossible — but a premarket retreat has made it less likely
In order to reach a price of $50 per share, Trump Media stock would have to rally by 19.61% — slightly less than it already has within the last 7 days. Although it is quite a tall order, this wouldn’t be particularly out of place for DJT stock.
Looking back, the price of Trump Media shares has seen numerous double-digit surges that have coincided with developments positive for Trump.
After the first failed attempt on the President-elect’s life, the stock experienced a 60% rally. More recently, an announcement that the company would acquire crypto trading platform Bakkt (NYSE: BKKT) triggered a 16.5% move to the upside.
However, this time around, things could play out differently. Most notably, DJT stock has seen an 8.53% dip in the premarket trading session, receding to a price of $39.25 per share. With such a significant pullback, traders who opened long positions might very well be tempted to take their profits sooner rather than later.
Ultimately, readers would do well to remember that, unlike most stocks, DJT doesn’t seem to play by the rules or abide by rationality. In essence, investing in the business has always been a bet — and in this instance, the immense risk tolerance required might just make it not worth the effort.
Featured image via Shutterstock
