Mar 27, 2024 - Economy

Trump Media is officially a meme stock

Data: YCharts; Chart: Axios Visuals
Data: YCharts; Chart: Axios Visuals

Trump Media & Technology Group — trading under the ticker symbol DJT — is America's newest meme stock, boasting a market capitalization, at the close of trade on Tuesday, of $7.9 billion.

The big picture: That's astonishingly high for a company that brought in a mere $3.4 million in revenue over the first nine months of 2023, losing a total of $49 million.

  • Meme stocks don't trade on fundamentals, however, and by meme-stock standards, DJT could rise much further yet.

Zoom in: In snagging the DJT ticker symbol — Donald Trump's initials — TMTG effectively ensured that it would trade more on Trump-related sentiment than on fundamentals.

Zoom out: The height of the meme-stock craziness was probably Jan. 27, 2021. On that day...

  • BBBY (Bed, Bath & Beyond) closed at a valuation of $6.4 billion; since then, it filed for bankruptcy, and the shares went to zero.
  • BB (BlackBerry) was worth $14.1 billion; today it is worth $1.6 billion.
  • GME (GameStop) was worth $22.6 billion. Its current market cap is $4.7 billion.

Between the lines: Other meme stocks rose even further in valuation, with Upstart and AMC peaking at more than $31 billion and Robinhood maxing out at just shy of $60 billion.

The bottom line: If we learned one thing in January 2021, it's dangerous to bet against a meme stock that's going up.

  • DJT stock might seem as though it's exorbitantly priced today, but that doesn't mean it can't rise even further tomorrow.
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