Trump Media Group's shares extended their slide on Friday, hitting a record low as investors digested the Democratic victories in the midterm elections. The stock, trading under the ticker DJT, fell to $3.99, marking a 70% decline year-to-date and a 76% drop from its January peak. The sell-off is likely to persist as the company prepares to release its quarterly earnings later today.
Business fundamentals remain weak
Trump Media, the parent of Truth Social, has been one of the worst performers on Wall Street this year. The post-midterm slump reflects a broader reassessment of the company's prospects, especially as President Donald Trump's political influence wanes. Democrats are projected to secure 56 Senate seats and roughly 260 House seats, a result widely seen as a rebuke of Trump's policies, including tariffs and the ongoing conflict with Iran.
Polling data had already signaled a decline in Trump's popularity, even among his core MAGA base. This is mirrored in Truth Social's traffic metrics. According to SimilarWeb, the platform attracted just 11.8 million visits in October, a 22.9% drop from September. This decline occurred even before the midterms, during a period when Trump was actively posting announcements.
Adding to the pressure, Democrats have pledged to investigate alleged corruption involving Trump. One focus is Truth Social's recent move to charge users $100,000 for early access to Trump's posts. The service has already attracted a handful of customers who use these posts to inform their trading decisions.
Q3 earnings as a catalyst
The upcoming earnings report is a critical test for DJT stock. Investors will scrutinize revenue figures, particularly following the launch of the subscription product. In the last quarter, the company reported a net loss of $238 million on revenues of just $1.7 million. That loss was significantly wider than the $20 million loss in the same period last year, largely due to its Bitcoin holdings.
Analysts expect the new report to show continued revenue constraints, as major advertisers have largely ignored the platform. The company's heavy reliance on Trump's persona is a structural risk, especially as his political power diminishes. With his influence fading, traffic could keep declining, further undermining the business.
Technical outlook remains bearish
From a technical perspective, DJT stock has been in a steady downtrend for months. It has already broken below the key support level of $6.98, its June low. The stock trades well below all major moving averages, indicating that sellers remain in control. The Relative Strength Index (RSI) is deeply oversold, but that alone rarely signals a reversal in a strong downtrend.
The most likely scenario is continued downside, with the next psychological support at $3.50. A break below that level could trigger further selling pressure.
This article is for informational purposes only and does not constitute financial advice.
