DJT Stock Alert: Trump Media Is Launching a Streaming TV Service

  • Trump Media & Technology Group (DJT) is gearing up to launch a media streaming platform.
  • This new venture isn’t helping boost DJT stock — and is unlikely to boost shares long-term.
  • If history is any indication, the launch may actually end up pushing down the stock.
DJT stock - DJT Stock Alert: Trump Media Is Launching a Streaming TV Service

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Even as his legal future continues to look questionable, former President Donald Trump is eyeing a new business venture. Truth Social, Trump Media & Technology Group’s (NASDAQ:DJT) social media platform, just announced plans to launch a media streaming service. The company claims to have concluded six months of Web and iOS testing and is preparing to begin its streaming rollout, which will consist of three phases.

This news hasn’t helped Trump Media & Technology Group so far. While DJT stock popped in premarket trading, shares have since slipped back into the red. Of course, things haven’t been very good for this troubled company lately. But when news of a new product can’t even spur even temporary growth for a stock, investors should be worried.

What’s Happening With DJT Stock?

With Trump in the national spotlight as his hush money trial progresses, any company linked to the former president is likely to face turbulence. Yesterday, the week began with DJT stock plunging on news that the company had filed for a share sale with the U.S. Securities and Exchange Commission (SEC). Now, shares are falling another 10% and don’t seem to be slowing down.

This recent announcement would have likely boosted a stronger company. But the fact that the market isn’t reacting well to the streaming launch should tell investors everything they need to know about DJT stock.

CEO Devin Nunes discussed the streaming launch plans:

“With our streaming content, we aim to provide a permanent home for high-quality news and entertainment that face discrimination by other channels and content delivery services […] There is a lot of great content that simply can’t find an audience for unjust reasons, and we want to let these creators know they’ll soon have a guaranteed platform where they won’t be cancelled.”

Nunes’ comments may highlight exactly why this development isn’t spurring growth. The CEO’s logic assumes that there are no other channels for conservative and alternative media, but that just isn’t true. Indeed, his description of what the streaming platform aims to be is extremely similar to Rumble (NASDAQ:RUM) — the video-sharing platform that bills itself as “immune to cancel culture” and plays host to many alt-right talking heads. The content Nunes cites likely “can’t find an audience” because there isn’t a big enough body of interested viewers, not because the platform for it doesn’t exist.

Why It Matters

Even if the streaming platform moves forward, there’s something else investors should consider: The last time Trump Media tried to launch something, it didn’t go well. Indeed, when Truth Social debuted in February 2022, the platform featured many bugs that took months to work out. As The Washington Post reported, this raised serious concerns about the firm’s growth potential. Years later, those concerns are still relevant as it prepares for another rollout. If the three-phase streaming launch is as disastrous as the Truth Social rollout, it will likely push down DJT stock even further.

Much of the buzz surrounding TMTG has been due to meme stock hype. As seasoned investors know, that type of momentum is often superficial and short-lived. It should be counted among the many reasons not to bet on shares. The possibility of bankruptcy still looms large and decisions like the recent share sale only serve to make things worse. Investors shouldn’t expect the streaming venture to help this sinking ship.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Samuel O’Brient is a Reporter for InvestorPlace, where his work focuses primarily on financial markets, global economic trends, and public policy. O’Brient writes a weekly column on recent political news that investors should be following.

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