"Jim Cramer Warns of Potential 95% Drop in Trump's Truth Social Stock"

1 min read
Source: Newsweek
"Jim Cramer Warns of Potential 95% Drop in Trump's Truth Social Stock"
Photo: Newsweek
TL;DR Summary

Trump Media & Technology Group Corp, trading under the DJT ticker, has drawn attention as a "meme stock" with its valuation being flagged as "overvalued" by CNBC's Jim Cramer. The company's market cap far exceeds its modest revenue and operational losses, and its stock price is being driven by a mix of Trump's supporters and speculative traders, detached from traditional financial metrics. The stock's status as a meme stock is further magnified by significant short interest and its association with the 2024 election cycle. Despite the company's positive stock performance, former president Donald Trump faces constraints on liquidating his shares due to market regulations, and the necessity to post a reduced $175 million bond in his New York fraud case.

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