Several large, well-known fund management companies bought shares of Trump Media & Technology Group (DJT) in the second quarter. This comes after the Trump co-founded company made its highly anticipated debut in March.
New 13F disclosures for the second quarter reveal that prominent investors like Blackrock, Vanguard, State Street, and Charles Schwab Investment Management added to their positions in Trump Media & Technology Group Corp. These purchases are notable given the recent decline in the company’s stock price, which has fallen approximately 40% in the past few weeks. However, over the past 12 months, DJT shares have risen over 43%.
These hedge funds’ interest in Trump Media could be driven by various factors, including the potential for future value creation tied to Trump’s political aspirations and his potential return to the White House. The social media stock was also added to Russell indexes in July, which could further boost its appeal to investors.
The stock’s performance during the second quarter, however, was volatile. DJT shares traded for a low of $22.55 on April 16 and reached a high of $61 on April 1.
Shares of the Trump media company have been particularly volatile during the 2024 election race, frequently experiencing spikes and drops related to Trump’s standing in polls, significant events like presidential debates, and his legal troubles.
In recent weeks, the stock has experienced a downturn, potentially linked to Trump’s return to the rival platform X (formerly Twitter). Trump has engaged in conversations and posted on X, drawing millions of viewers and followers. His activity on X could potentially divert attention from his Truth Social platform, which is owned by Trump Media & Technology Group. Trump currently has 89.4 million followers on X, significantly exceeding his 7.54 million followers on Truth Social.
Trump Media & Technology Group recently reported second-quarter revenue of $840,000 and a net loss of $16.4 million. The company also launched a new video platform in the second quarter, which could expand its reach and generate new revenue streams.
Despite recent volatility, DJT shares are up 0.62% to $24.12 on Thursday, trading within a 52-week range of $13.11 to $79.38. The stock’s lowest trading price since going public has been $22.55. However, the stock is down 40% over the past month.
While the recent investment activity from hedge funds suggests some confidence in the company’s future, the stock’s performance remains closely tied to Trump’s political activities and the evolving landscape of social media platforms.
