Trump Media & Technology Group Corporation

Trump Media & Technology Group Corp. (NASDAQ: DJT) is a social media and technology-focused company. The Company’s social media platform, TruthSocial, provides an outlet outside of Big Tech that encourages open global conversation without discriminating against political ideology. The Company is also focused on developing a subscription-based video streaming service, TMTG+, which intends to include access to non-woke entertainment, news, documentaries, podcasts and more.

Recent Business and Financial Updates

• Financial Highlights and Performance: Trump Media and Technology Group Corp. (TMTG), the operator of the Truth Social platform, announced its financial results for the third quarter of 2024, alongside the filing of its quarterly report with the SEC. As of September 30, 2024, TMTG maintained a robust financial position with USD 672.9 million in cash, cash equivalents, and short-term investments, and no outstanding debt. Despite an operating loss of USD 23.7 million and a net loss of USD 19.2 million, the company achieved USD 1.0 million in revenue and USD 4.7 million in interest income. The losses included USD 12.1 million in legal fees associated with its August 2024 acquisition of TV streaming technology and a March 2024 merger, as well as USD 3.9 million allocated to research and development. TMTG remains confident in its ability to fund operations with its substantial cash reserves while it builds its ecosystem and enhances long-term shareholder value.
• Expansion of Streaming Capabilities: During the third quarter, TMTG significantly expanded its offerings by introducing Truth+, a proprietary TV streaming platform. This expansion included the activation of a nationwide TV content delivery network, designed with in-house infrastructure to ensure independence from external technology providers. Truth+ offers live TV, video on demand, and features like live TV rewind, catch-up TV, and DVR functionality. Native apps were launched for iOS, Android, and several connected TV platforms, including Apple TV and Amazon Fire TV, with plans to extend to additional platforms such as Roku and LG.
• Strategic Initiatives and Future Growth: TMTG is actively exploring avenues for growth, including potential mergers and acquisitions, particularly in sectors such as fintech. These initiatives aim to leverage the company’s proprietary technology and brand strength. Additionally, TMTG is expanding the Truth+ content library by integrating live TV channels like PureFlixTV and Great American Adventures TV, alongside a focus on diverse content genres such as news, faith-based programming, and children’s content.
• CEO’s Remarks: TMTG CEO Devin Nunes emphasized the company’s commitment to innovation and independence, highlighting the rapid deployment of Truth+ and the establishment of a proprietary tech stack to mitigate reliance on Big Tech. He underscored the company's mission to create a comprehensive ecosystem encompassing social media, streaming services, and beyond, positioning Truth+ as a pivotal driver of long-term revenue and shareholder value.
• Operational Outlook: With a strong balance sheet and strategic investments in streaming technology, TMTG is poised to capitalize on emerging opportunities. The company anticipates continued advancements in its streaming services and user experience, guided by feedback from ongoing beta testing. These efforts aim to solidify TMTG's position as a leader in free speech-focused digital platforms and streaming innovation.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 46.72, downward trending correcting from overbought levels, with the price near an important range of USD 25-USD 28, with expectations of momentum on the upper side if these support levels sustain. Additionally, the stock's current positioning is between both 50-Day SMA and 200-Day SMA, which can act as a short to medium term support and resistance levels respectively.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘Speculative Buy’ rating has been given to Trump Media & Technology Group Corp. (NASDAQ: DJT) at the closing market price of USD 28.10 as of November 15, 2024.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is November 15, 2024. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.s

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.