Trump Media stock hasn't been public very long, but it's already gotten a lot of attention from investors. That shouldn't come as a surprise. After all, few people can attract media attention consistently like Donald Trump.
Stock
The 45th president has been a magnet for the tabloids since the 1980s, well before he entered the White House. So, in some ways, it makes sense that he finally started his own media company, Trump Media & Technology Group (DJT 4.48%)(NASDAQ:DJTWW), or Trump Media for short.
The genesis of Trump Media, the parent company behind Trump's Truth Social social media platform, was a 2021 response to Twitter's banning of Trump from the platform. After a long period of awaiting a merger with the special purpose acquisition company (SPAC) Digital World Acquisition Company, Trump Media is now publicly traded and was valued at $8.1 billion in mid-2024.
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Are you interested in investing in Trump Media stock? Keep reading to learn more about it.
How to buy
How to buy Trump Media stock
Now that Trump Media & Technology Group is publicly traded, investing in the stock is basically the same as with any other publicly traded stock. Let's take a look at the step-by-step moves you need to make to buy Trump Media stock.
Step 1: Open a brokerage account
If you don't have a brokerage account, the first thing you'll need to do to invest in Trump Media stock is open one. You can choose from a wide variety of brokerages, including Charles Schwab (NYSE:SCH), Fidelity, Robinhood (HOOD 3.29%), and E*trade. Different brokerages have different strengths and weaknesses, so it's a good idea to do your research before committing to a platform.
Step 2: Figure out your budget
The next step is to decide how much you want to invest. To determine that, first consider how much money you're able to invest. Before you put money in the stock market, you'll want to pay off high-interest debts, like credit cards, and save up an emergency fund of three to six months' worth of expenses in case you lose your job or have an unexpected medical or home improvement bill.
If you already have a stock portfolio, your budget for investing in Trump Media should be based on your level of confidence in the stock. In general, it's a good idea to limit new investments to no more than 10% of your total portfolio so you can maintain a diversified portfolio.
Step 3: Do your research
Before deciding to invest, you'll also want to do your research. With any stock, and certainly a newly public one like Trump Media, you'll want to understand both the risks and the opportunities facing the company. Who are its competitors? Does it have any competitive advantages? What are its financials like? Is the company growing and profitable?
You should be familiar with the valuation as well. It's important to understand whether the business is not just strong but also a good value.
It's also a good idea to write down your reasoning and investing thesis regarding why you believe the stock should increase so that you can revisit it later to see how it's playing out. If the stock is performing poorly and the conditions don't line up with your expectations, it may be time to sell.
Step 4: Place an order
Finally, once you've opened a brokerage account, decided on your budget, and researched the investment, it's time to place your order. There are primarily two types of orders you can use to buy a stock: a market order and a limit order.
With a market order, you buy the stock at the current price, determined by the bid and the ask. Market orders work well for executing stock purchases or sales quickly. With a limit order, you specify the maximum price you're willing to pay for a stock, and your order will be executed if a seller is willing to sell it for that amount. It gives you more control over how much you pay, but it could take longer to get executed.
Should I invest?
Should I invest in Trump Media?
If you're wondering whether you should invest in Trump Media, you should first understand that this is a very risky stock. Not only is it newly public, but it's also unprofitable and has barely any revenue. In its first-quarter earnings report, Trump Media reported a generally accepted accounting principles (GAAP) loss of $327.6 million and just $770,500 in revenue.
The company has made big promises, including launching its own streaming network. It plans to introduce its own content delivery network soon and release Truth Social streaming apps. Its current results show the business is in a development stage, but its market cap of $8 billion indicates big expectations from investors.
Profitability
Is Trump Media profitable?
Trump Media is not currently profitable. However, its GAAP losses may make it seem like it's losing more money than it actually is since some of those losses stem from the SPAC combination that took it public.
On an adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) basis, the company lost $12.1 million in the first quarter and $9.3 million on a free-cash-flow basis.
Trump Media could become profitable, but it will need to generate meaningful revenue. The first step toward profitability is likely building an advertising business like other social media companies and then a streaming business. However, it could take several years for Trump Media to turn profitable.
Dividends
Does Trump Media pay a dividend?
Trump Media doesn't currently pay a dividend. The stock has just gone public and isn't currently profitable. Investors shouldn't expect Trump Media to pay a dividend for at least a few years, if ever.
ETF options
ETFs with exposure to Trump Media
Although Trump Media is a new stock, some exchange-traded funds (ETFs) have already added the new social media company to their holdings. Those include five mostly small ETFs, as shown in the chart below:
| ETF | Ticker | Assets Under Management | Expense Ratio |
|---|---|---|---|
| VanEck Social Sentiment ETF | (NYSEMKT:BUZZ) | $60.2 million | 0.75% |
| Global X Social Media ETF | (NASDAQ:SOCL) | $144.9 million | 0.65% |
| BNY Mellon US Mid Cap Core Equity ETF | (NYSEMKT:BKMC) | $458.3 million | 0.04% |
| Fidelity Nasdaq Composite Index ETF | (NASDAQ:ONEQ) | $6.35 billion | 0.21% |
| Goldman Sachs MarketBeta U.S. 1000 Equity ETF | (NYSE:GUSA) | $1.64 billion | 0.11% |
As you can see from the chart, a number of ETFs offer exposure to Trump Media, most of which track social media stocks. If the company expands into new industries, such as video streaming, it could be added to more sector ETFs.
Stock split
Will Trump Media stock split?
Trump Media stock is unlikely to split anytime soon. Stock splits generally happen with companies that have been publicly traded for a significant amount of time and whose stocks have appreciated significantly.
At the time of writing, Trump Media stock was trading at less than $50 a share, much lower than the price of a stock that typically splits its shares. Trump Media may eventually split its shares, but that is unlikely to happen without substantial price appreciation.
Related investing topics
The bottom line on Trump Media
Trump Media stock might be intriguing to a number of investors, but investors should be aware that it carries a lot of risk. It's not currently profitable and barely has any revenue. While its cash burn rate is sustainable, it's unclear whether the company can create a sustainable business.
At a market cap of $8 billion, investors are placing high expectations on Trump Media stock. The business will need to justify that valuation, which puts it at risk for a sell-off.
FAQ
Investing in Trump Media FAQ
How do I buy DJT stock?
Following its SPAC merger with Digital World Acquisition Corporation, DJT stock, or Trump Media and Technology Group, is now a publicly traded company. You can buy the stock by purchasing it through your brokerage.
Who owns Trump Media & Technology Group?
Donald Trump is the majority owner of Trump Media and Technology Group and owns a roughly 58% stake. The remainder of the stock is owned by insiders and individual shareholders.
What is the ticker for Trump Media?
The ticker for Trump Media is DJT, and it trades on the Nasdaq.
Should I buy Trump Media stock?
If you're thinking about buying Trump Media stock, you should be aware that the stock is highly risky. It is currently unprofitable and has barely any revenue. Its valuation seems to be based primarily on Donald Trump's influence, meaning the stock moves according to his political fortunes.
