President Donald Trump’s popularity on social media has been declining in the first hours of his term in office.
Shares of Trump Media & Technology Group (DJT), owner of the Truth Social platform, recently fell 10% to around $36. They have mostly fallen since reaching January highs above $40 and pre-election highs above $50, although they are up for the year and well above above the lows they hit earlier in the fall.
The latest moves come as traders seek to position themselves for the start of a new administration. Since Trump’s re-election, numerous “Trump deals” have taken place at various times – from optimism over oil stocks, large financial institutions and corporations having deals on the table to distrust of inflation, vaccine manufacturers and government contracting companies – and the US indexes are generally constantly changing. higher today.
Cryptocurrencies – in the form of bitcoins, memecoins, industrial stocks and other assets and trinkets – have also attracted the attention of investors.
Trump Media shares, with a market value close to $8 billion, are only a small part of the story, although their volatility in recent months has shown how well they can capture the attention of investors in the style of meme stocks.
“Be wary of newsfeed selling stocks after Monday’s (inauguration),” VandaTrack analysts wrote last week of Trump Media’s moves and crypto stocks. “A subsequent decline in these stocks, accompanied by significant retail buying, would involve institutional investors riding ahead of retail traders, using them as exit liquidity, leaving prices to fend for themselves thereafter.”
