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

• Anticipated Warrant Proceeds for Trump Media & Technology Group Corp.: Trump Media & Technology Group Corp. (DJT), the company behind the Truth Social platform affiliated with President Donald J. Trump, expects to receive over USD 69.4 million from the cash exercise of warrants on June 20 and 21, 2024. This follows the recent approval by the Securities and Exchange Commission of DJT's Form S-1 registration statement on June 18, 2024. Should all covered warrants be exercised, total proceeds could reach approximately USD 247 million. Additionally, DJT anticipates that USD 40 million in previously restricted cash will become unrestricted, supplementing over USD 200 million in existing unrestricted cash as of June 18, 2024. This influx of funds will significantly enhance DJT's financial standing.
• Financial Status and Operational Achievements: As of March 31, 2024, DJT reported a strong balance sheet with USD 273.7 million in cash and cash equivalents. This figure includes USD 233.7 million in unrestricted cash and USD 40.0 million held in restricted accounts pending the effectiveness of the company’s Form S-1 registration statement, filed with the SEC on April 15, 2024. Despite a first-quarter operating loss of USD 12.1 million based on non-GAAP Adjusted EBITDA, DJT remains well-funded to support its operations and growth initiatives. These initiatives include the continued development of Truth Social and its expansion into live TV streaming.
• Strategic Moves and TV Streaming Expansion: DJT is making significant strides in developing its TV streaming platform, an important advancement in its product portfolio. Having completed the research and development phase, the company is now focusing on scaling up its content delivery network (CDN). DJT has secured contracts with data center partners for hosting the CDN and with hardware vendors for necessary equipment. These steps position the company to roll out live TV streaming capabilities across multiple platforms in phases, enhancing its service offerings.
• Prospects and Growth Strategy: Looking forward, DJT is prioritizing long-term product development over immediate revenue gains. The company aims to enhance the features of Truth Social and expand its ecosystem. In the first quarter, DJT generated USD 770,500 in revenue, primarily from early-stage advertising efforts. As the user base grows and platform capabilities expand, the company anticipates further revenue growth. This strategic focus on developing robust, long-term products is expected to drive sustained growth and innovation for DJT.

Technical Observation (on the daily chart):

The Relative Strength Index (RSI) over a 14-day period stands at a value of 38.14, downward trending with the price near an important range of USD 24-USD 26, with expectations of momentum on the upper side if these support level sustains. Additionally, the stock's current positioning is below both 50-Day SMA and 200-Day SMA, which can act as a short to medium term resistance levels. The price has a resistance range around USD 28-USD 30, if broken will lead price to next resistance levels.

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 ‘Watch’ rating has been given to Trump Media & Technology Group Corp. (NASDAQ: DJT) at the closing market price of USD 26.98 as of August 05, 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 August 05, 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.