With Trump Media & Technology Stock Sliding, Have You Assessed The Risk?

DJT: Trump Media & Technology logo
DJT
Trump Media & Technology

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.

Relevant Articles
  1. Stocks, Bonds, Gold, Crypto: Market Update 12/22/2025
  2. Would You Still Hold Dillard’s Stock If It Fell Another 30%?
  3. Is Seagate Technology Stock Built to Withstand a Pullback?
  4. With Carnival Stock Surging, Have You Considered The Downside?
  5. Tilray Brands Stock Tumbled 25% – Opportunity or Trap?
  6. Can BlackBerry Stock Double?

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