Why Trump Media Stock Sank this week

Trump Media (DJT -1.47%? The share experienced a significant withdrawal of the valuation during the last week of trade. The company’s stock price closed the weekly session down 18.3%according to data from S&P Global Market Intelligence. Sales came in spite of a gain of 1.7% for S&P 500 index and 1.6% gain for Nasdaq Composite index.

Trump Media Stock lost grounds over the past week due to a “buy rumor, selling the news” dynamics after President Trump’s inauguration. The company’s stock price also seems to have seen bearish pressure due to the launch of Official Trump Cryptocurrency.

Trump Media Stock fades at Momentum after Inauguration and Krypto

President Trump’s inauguration was held on January 20, and some investors had bet his return to the White House would help spur Bullish Momentum for Trump Media Stock. Before a step that moved all his holdings to a confidence he is listed as the only recipient, President Trump had been the company’s biggest shareholder.

With the Post-Iuguration rally for Trump Media’s stock price, which was not realized, some investors chose to sell their shares, which made the stock see an even greater withdrawal of valuation.

President Trump’s steps to launch the official Trump Meme coin before returning to the office may also have been a negative valuation taxalyst for Trump media stock. While some investors are excited about what the new presidential administration could mean for the Crypto token, others have raised concern that the new token will reflect poorly on the wider industry. Similarly, the negative mood of official Trump may have muted enthusiasm for Trump Media Stock.

What’s next for Trump Media Stock?

After the withdrawal to the stock this week, Trump Media now has a market value of approx. 7.1 billion dollars. Meanwhile, the company’s core business has generated sales of only approx. $ 1.61 million during its first three quarters as a listed company.

While the company’s association with President Trump creates some benefits of fire strength that can help drive growth, Trump Media is dealing with a high valuation compared to its sales benefit. In addition, it is unclear which way the company will take to increase its income.

Trump Media’s Truth’s Social Platform has sent low user engagement and monetization metrics, and it is unclear whether its push in the streaming room will be a sales driver that can get the company on a long -term path to profitability. Without a more solid view of how the company is planning to build its business basic, Trump Media is likely to continue to act as a Meme share and see momentum-based valuation strends.