Trump Media & Technology Group (NASDAQ: DJT) saw its stock shed 4% to $18.41 on April 3, 2025, as trade tensions gripped the market following President Donald Trump’s sweeping global tariff announcement.
The tariffs, which include a 10% baseline on imports and targeted duties on key trading partners like China and the European Union, unsettled markets, dragging the S&P 500 down by 4% and adding further pressure on an already fragile DJT stock.
Over the past five days, DJT has dropped 8.04%, while the monthly decline has widened to 17.33%. Pre-market trading on April 4 showed continued weakness, with the stock slipping another 1.19% to $18.19.
While the tariffs triggered general market anxiety, DJT’s sell-off was also fueled by new concerns over insider stock sales.
In a filing with the SEC, Trump Media disclosed that a trust controlled by Donald Trump could potentially sell up to $2.15 billion worth of DJT shares, equivalent to more than 129% of the company’s public float.
While the company insists no immediate sales are planned, the prospect of such massive dilution rattled investors. Trump Media clarified that the filing was routine and intended to maintain regulatory compliance, but markets remained jittery.
Is DJT stock a buy?
Beyond the political noise, Trump Media’s financials are difficult to justify. The company’s fundamentals offer little support for its current valuation.
In 2024, the company generated less than $4 million in revenue, while its net loss widened dramatically to $400.9 million, up from $58.2 million in 2023.
Despite these weak numbers, the company maintains a multi-billion-dollar market cap and trades at a price-to-sales (P/S) ratio of 1,121, a valuation that appears completely disconnected from its underlying fundamentals.
While insiders who purchased shares at lower prices could still turn a profit, public investors face the risk of holding a severely overvalued stock with no clear path to sustainable growth.
Trump Media has also made several moves into financial services, including a March 2025 partnership with Crypto.com to launch ETFs blending digital assets and U.S.-focused stocks.
Earlier efforts, such as a proposed acquisition of Bakkt and the launch of Truth.Fi, sparked brief rallies. However, these initiatives have yet to yield tangible results, offering little immediate relief for investors hoping for a turnaround, with the path forward remains speculative and largely unproven.
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