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

• Trump Media & Technology Group Corp. Expects USD 69.4 Million in Warrant Proceeds: Trump Media & Technology Group Corp. (TMTG), operator of the Truth Social platform and affiliated with President Donald J. Trump, announced anticipated proceeds exceeding USD 69.4 million from the cash exercise of warrants on June 20 and 21, 2024. This financial development follows the Securities and Exchange Commission's recent approval of TMTG's Form S-1 registration statement (File No. 333-278678) on June 18, 2024. With potential total proceeds reaching approximately USD 247 million if all covered warrants are exercised, the company also expects USD 40 million in previously restricted cash to become unrestricted. Coupled with over USD 200 million in existing unrestricted cash as of June 18, 2024, these funds bolster TMTG's financial position significantly.
• Financial Position and Operational Highlights: As of March 31, 2024, TMTG reported a robust balance sheet with USD 273.7 million in cash and cash equivalents. This includes USD 233.7 million in unrestricted cash and USD 40.0 million held in restricted accounts pending the effectiveness of TMTG’s Form S-1 registration statement, filed with the SEC on April 15, 2024. Despite recording a first-quarter operating loss of USD 12.1 million based on non-GAAP Adjusted EBITDA, TMTG remains well-capitalized to fund its operations and growth initiatives, including the development of Truth Social and expansion into live TV streaming.
• Strategic Initiatives and Streaming Development: TMTG has embarked on its TV streaming platform development, marking a significant step forward in its product evolution. The company completed the research and development phase and is now scaling up its content delivery network (CDN). Contracts have been signed with data center partners for hosting the CDN and with hardware vendors for necessary equipment, positioning TMTG to deliver live TV streaming capabilities across multiple platforms in phases.
• Outlook and Future Growth: Looking ahead, TMTG continues to prioritize long-term product development over short-term revenue, aiming to enhance Truth Social’s features and expand its ecosystem. The company generated USD 770,500 in first-quarter revenue primarily from nascent advertising efforts, with plans for further revenue growth as its user base and platform capabilities expand.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 45.45, upward trending, with expectations of an upward momentum. Additionally, the stock's current positioning is between both the 50-period SMA and 200-period EMA, which may serve as dynamic short to medium-term resistance and support levels respectively.

As per the above-mentioned price action, recent key business and financial updates, and momentum in the stock over the last month, a ‘Speculative Buy’ rating has been given to Trump Media & Technology Group Corp. (NASDAQ: DJT) at the closing market price of USD 36.73 as of June 27, 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 June 27, 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.

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.