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Could Trump Media & Technology Group Corp. Help You Turn a Profit in This Volatile Market?

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
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With heightened public attention, Trump Media & Technology Group Corp. sees its stocks trading up by 4.2 percent on Tuesday. Significant developments such as increased regulatory scrutiny and new strategic partnerships are driving market sentiment and investor optimism towards the firm. These factors are contributing to the upward movement in the company’s stock price, indicating growing confidence in its future performance.

  • Trump Media & Technology Group surged 3.1% in pre-market trading, following an impressive 11.8% spike the prior session.
  • Following nearly 3% increase in pre-market trading, Trump Media Corp. continues its upward trend.

Candlestick Chart

Live Update at 14:26:23 EST: On Tuesday, September 24, 2024 Trump Media & Technology Group Corp. stock [NASDAQ: DJT] is trending up by 4.2%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Key Financial Highlights: A Deep Dive into Trump Media & Technology Group Corp.’s Recent Performance

Trump Media & Technology Group Corp. (DJT) has seen some fascinating changes lately. Riding an 11.8% surge from the prior session, it continued to rise by 3.1% pre-bell on Sep 16, 2024. These numbers show that DJT is commanding attention, but what’s beneath the surface?

Revenue and Earnings Report

Reflecting on the most recent earnings report reveals a company wading through a mix of challenges and opportunities. For the quarter ended Jun 30, 2024, DJT reported total revenue of $836,900, with a gross profit of $800,700. Their operating income stood at a negative $18,658,500, while their net income registered a loss at $16,368,000. These figures reveal that while revenue streams are present, profitability remains an elusive target.

The company’s assets are strong, with total assets amounting to $356.49M and cash reserves alone contributing $343.95M. On the other side, total liabilities stand at $14.82M. So, despite operational losses, DJT maintains a robust balance sheet largely due to its significant cash reserves.

Key Financial Ratios

Let’s paint a clearer picture by diving into some key ratios. The company’s EBIT margin sits at a stark -22,341.6%, indicating heavy losses compared to earnings before interest and tax. Their gross margin, however, is a strong 88.8%, suggesting excellent control over production costs relative to revenue.

One standout figure is the current ratio of 24.7, representing liquidity strength. Their leverage ratio is modest at 1, implying good control over debts. Conversely, the return on equity (ROE) plummets to -246%, a red flag showing negative returns on shareholders’ equity.

More Breaking News

Liquidity and Cash Flow

DJT’s cash flow story is as complex as a Shakespearean play. Cash flows from operating activities were negative $21.44M, while investing activities pulled another $2.14M out. Yet, financing activities injected a hopeful $93.81M into the coffers. This significant cash influx hints at strong investor confidence despite operational setbacks.

Market Reactions: The Rollercoaster Behind DJT’s Stock Jumps

As DJT bounced, one couldn’t help but draw parallels with a rollercoaster—it’s thrilling, yet you can’t predict what’s next. Here’s why such volatility ensues:

The Unexpected Pre-Market Surge

DJT’s recent pre-market trading saw a nearly 3% climb. This boost is often tied to high anticipation around new announcements or big moves in the sector. Restoration of investor confidence plays a vital role here, potentially sparked by recent trends and financial infusions that assure liquidity.

Strategic Moves and Market Positioning

Eyes sharpen when DJT makes strategic announcements. Their rise is partially attributed to speculation around aggressive expansion plans or collaborations hinting at lucrative future ventures. This is akin to a highly talented startup making waves in Silicon Valley, capturing imaginations and wallets alike.

Sentiment of Upcoming Ventures

News sentiment swings markets and DJT’s is no stranger to it. Speculations on their next big move, combined with past behavior, stokes investor interest. These sentiments are key to explaining their stock’s high volatility. Like whispers in a crowded room, news spreads and reactions follow swiftly.

The Crossroads: Heading Forward with DJT

Balancing Risks and Rewards

The crux of investing in DJT lies in balancing the downside with the potential upside. Their robust cash reserves are a safety net, but ongoing losses indicate a need for keen vigilance. Envisioning an investment here is like setting out to sea with ample provisions yet uncharted waters ahead.

Investor’s Checklist: Potential Entry and Exit Points

With its dramatic price swings, DJT is best navigated with a discerning eye on entry and exit points. For those looking to enter, assessing past resistance at highs like $15 or $17 could inform decisions. The exit point might be less straightforward but pegging it around significant spikes seen recently could ensure profitable trades.

Monitoring Future Announcements

DJT stands at a crossroads, where future announcements and financial health will dictate market movements. Continuous tracking of news and strategic steps will be crucial for the smart investor.

Conclusion: A Story Still Being Written

DJT’s narrative is far from over. While the recent spikes have turned heads, it’s a story of potential and caution. Balancing its promising liquidity with operational challenges will be key. In this tale of market twists and turns, every chapter brings new insights and opportunities for those who dare to dive in.

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”