With Trump Media & Technology Stock Sliding, Have You Assessed The Risk?
Trump Media & Technology (DJT) stock is down 10.4% in a day. The recent slide reflects renewed concerns around its weak financials and highly speculative ventures, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Trump Media & Technology stands today.
- Size: Trump Media & Technology is a $4.0 Bil company with $3.7 Mil in revenue currently trading at $14.41.
- Fundamentals: Last 12 month revenue growth of 9.1% and operating margin of -4618.7%.
- Liquidity: Has Debt to Equity ratio of 0.24 and Cash to Assets ratio of 0.4
- Valuation: Trump Media & Technology stock is currently trading at P/E multiple of -27.8 and P/EBIT multiple of -31.3
- Has returned (median) -29.1% within a year following sharp dips since 2010. See DJT Dip Buy Analysis.
These metrics point to a Weak operational performance, alongside Very High valuation – making the stock Very Unattractive. For details, see Buy or Sell DJT Stock
That brings us to the key consideration for investors worried about this fall: how resilient is DJT stock if markets turn south? This is where our downturn resilience framework comes in. Suppose DJT stock falls another 20-30% to $10 – can investors comfortably hold on? Turns out, the stock has fared much worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Below, we dive deeper into each such downturn.
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2022 Inflation Shock
- DJT stock fell 87.2% from a high of $97.54 on 4 March 2022 to $12.46 on 23 June 2023 vs. a peak-to-trough decline of 25.4% for the S&P 500.
- The stock is yet to recover to its pre-Crisis high
- The highest the stock has reached since then is $66.22 on 27 March 2024 , and currently trades at $14.41
| DJT | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -87.2% | -25.4% |
| Time to Full Recovery | Not Fully Recovered | 464 days |
Feeling jittery about DJT stock? Consider portfolio approach.
Why Stock Pickers Win More With Multi Asset Portfolios
Markets move differently but a mix of assets smooths volatility. A multi asset portfolio keeps you invested and reduces the impact of sharp drops in any single area.
The asset allocation framework of Trefis’ Boston-based, wealth management partner yielded positive returns during the 2008-09 period when the S&P lost more than 40%. Our partner’ strategy now includes Trefis High Quality Portfolio, which has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices