Should I Buy Trump Media and Technology Group (DJT)? Finance YouTuber Analysis

The YouTuber advises selling Trump Media and Technology Group (DJT), highlighting its $7.7 billion market cap against only $3.4 million in revenue and $372 million in net losses over the past year. He argues there is no real business or strategy for it to become a major player in the social media landscape, which he describes as a 'smiling curve business' requiring scale or extreme niche. He concludes it's a meme stock with no long-term potential for asymmetric investors.

“this is again more of a meme stock than it is a fundamental stock and that is not what we want to own as long-term asymmetric investors”

The YouTuber strongly recommends avoiding Trump Media and Technology Group, citing its extremely poor financials with only $3.4 million in revenue and a $379 million loss over the past year, alongside negative cash flow. He argues that the social media landscape favors scaled platforms or niche services with high pricing power, neither of which Trump Media currently possesses. Despite its $3.6 billion market cap, he believes the company lacks a fundamental viable business model and expects its stock to continue declining.

“The bottom line with investing is you have to invest in companies that have a fundamental business behind them these are not meme coins these are real companies and real Investments and there's no real business there for Trump media and technology”

The analyst argues that Trump Media is a stock to absolutely avoid due to its extremely high market cap ($8.3 billion) relative to its minimal revenue ($3.8 million over the past year). He states there is no fundamental business, critical mass of users, or advertisers to support its valuation, making it pure hype.

“I think this is a stock to absolutely avoid and stay away from because there's no fundamental business behind it.”

The YouTuber strongly advises avoiding Trump Media and Technology Group, calling it an 'ultimate gamble' completely detached from reality. He points out its $7 billion market cap with almost no revenue ($4 million), resulting in an absurd price-to-sales ratio of 2,000. The company's valuation is seen as a pure bet on Trump's presidency and potential unfair advantages, rather than fundamental business performance.

“The company currently trade at around 7 billion market cap yet it generate almost no Revenue 4 million to be exact putting its price to sell ratio around 2,000 almost no one used through social for their 7 billion valuation to make sense they would need to gain $1100 every time someone visits their website it's like Pure Fantasy”

The YouTuber suggests buying DJT if it pulls back to the $32-$33 support level. If this level holds, he anticipates a move back to $40-$42, and potentially $50-$54 if it breaks above $42. He emphasizes using a stop loss below $32.

“32 to 33 is going to be a support level that this may try to come down to if they don't steal the move from us in um pre-market or after hours okay if this gets to 33 and holds guess what it's going to go right back to 40 and 42 and if we break 42 then it's off to the races to 50 and then 54”

The YouTuber believes that due to the recent event involving Donald Trump and the resulting positive momentum and volatility, DJT stock, currently at $31, could easily reach $37 or even $40 the next day. He suggests this could be a quick double-up opportunity.

“because of the strong stance he made and the the likelihood of the positive momentum that will come in and the volatility that will come in behind all of this this and that he's still alive and with us I can easily see this going back to at least $37 on tomorrow”

The YouTuber advises avoiding Trump Media, citing its extremely risky business model with low revenue ($3.3 million in 9 months of 2023) and significant losses ($49 million). He points out its valuation of $9 billion is excessively high compared to active users, making it the most expensive stock per user, and highlights the high cost and risk associated with shorting the stock due to limited shares available.

“first folks understand that this is a terrifically risky business and a stock for the 9 months reported in 2023 company made just $3.3 million in ad revenue and lost $49 million it's reported 9 million signups to the platform though active monthly users are closer to 5 million and a current valuation of $9 billion on the shares that makes it by far the most expensive at over $1,000 per signed up user and 1,800 per active user.”