Donald Trump’s newest business venture, Trump Media & Technology (NASDAQ: DJT), experienced wild price swings in the run-up to and immediate aftermath of the presidential election and inauguration.
While DJT shares proved to be quite profitable for enterprising traders who were able to stomach a lot of risk, the mainstream appeal of Trump Media stock still left something to be desired.
Although it comes as little surprise, the Donald Trump stock’s price action closely mirrors public sentiment surrounding the President, leaving little space for fundamental analysis and clear entry and exit points.
Picks for you
Up to this point, Trump’s second term has been controversial, to say the least. Since the start of the year, Trump Media stock has lost 32.93% in value.
However, things seem to be looking up for the Donald Trump stock — as it closed at a price of $20.95 on Monday, March 24, only to skyrocket to $22.76 by press time on March 26. While the change appears minor in absolute dollar amounts, it represents a 9.16% rally.
So, what caused this sudden and sharp move to the upside? It’s actually a continuation of the company’s strategic effort to broaden its reach in the area of finance.
Donald Trump stock soars on key crypto deal
On March 24, the business announced that it intends to partner with Crypto.com to launch a series of exchange-traded funds (ETFs). Per the announcement, these funds will contain both digital assets as well as securities from a variety of industries that have a ‘Made in America’ focus. The funds are expected to launch later this year, subject to regulatory approval.
This is by no means the first instance of the media business expanding into the realm of finance. Back in November of 2024, DJT stock surged by 16.65% after news broke that the company would acquire cryptocurrency trading platform Bakkt. Then, in late January, Trump Media shares saw a 10.15% rally when it was announced that a new financial services and fintech arm, Truth.Fi, would be launched.
However, not all of the recent developments surrounding the Donald Trump stock have been positive. Between March 10 and March 12, two company insiders sold a total of $728,000 worth of Trump Media stock.
The insiders were Phillip Juhan, Chief Financial Officer (CFO), and Eric Swider, a member of the board. What’s more, neither of the trades was prearranged, hinting that both Juhan and Swider were in a hurry to liquidate a portion of their holdings.
While it would be premature to say that DJT shares are now trading in accordance with their fundamentals, this is a significant development toward that, as hype, as potent as it can be, seldom represents a good long-term strategy.
With that being said, readers should note that Trump Media stock is, as of the time of writing, down 3.67% in pre-market trading session — so it remains to be seen whether or not the rally is sustainable.
Featured image via Shutterstock
