The Bull Case for Trump Media Stock: It’s About Possibilities, Not Politics


  • Trump Media & Technology Group (DJT) represents a stake in an alternative media platform.
  • Furthermore, DJT stock should catch the attention of bold contrarian investors.
  • Consider taking political biases out of the equation when assessing Trump Media stock. 
Trump Media stock - The Bull Case for Trump Media Stock: It’s About Possibilities, Not Politics

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Avoiding an asset is tempting when the media coverage is negative. Yet, investors should at least give Trump Media & Technology Group (NASDAQ:DJT) some consideration. In spite of the widespread pessimism — or actually, because of that pessimism — we’re assigning a contrarian “A” grade to Trump Media stock.

What many critics seem to overlook is that Trump Media shares aren’t designed to be a proxy vote for the former president. Rather, they’re an investment in what could turn out to be a game-changing media venture. If they think of it that way, perhaps investors can get a better, less politically charged view of Trump Media’s growth potential.

Trump Media Stock: Consider the Other Side of a Crowded Trade

There’s an old financial-market saying of unknown origin. The gist is that, if the vast majority of people expect something to happen, usually the opposite thing actually happens.

Trump’s election in 2016 is a perfect example of this. Most political and financial pundits didn’t really think Trump would win. As it turned out, they were wrong.

This isn’t an editorial on who will or won’t win the 2024 presidential election. However, if Trump pulls off another unanticipated win this year, you can imagine the massive-rally potential for Trump Media stock.

That’s not guaranteed, by any means. Yet, investors should keep an open mind to all possibilities and remember crowded trades don’t always end well.

And suffice it to say, the long side of the trade with Trump Media stock is not crowded. Look around on social media, and you’ll find no shortage of pessimism surrounding this stock.

You might even hear it being called a “scam.” Now, that’s what it sounds like when the crowd truly despises a stock.

Trump Has Skin in the Game — and So Do the Short Sellers

Regardless of one’s political beliefs, it’s impossible to deny that Trump has clout. Just a few words from the former president can, as we’ve seen, impact the price of a stock.

It’s also worth noting that, unlike many of the financial pundits and social media gurus out there, Trump actually has skin in the game. In particular, the former president reportedly has a 90% stake in Trump Media & Technology Group.

The short sellers also have skin in the game, but in the opposite direction. At one point, the short interest in Trump Media stock was estimated at 12.6%.

Ihor Dusaniwsky, managing director of financial analytics at S3 Partners, observed that “demand to short this stock” is “extremely high,” to the point where he saw “stock-borrow rates at 500% to 600% fee levels.”

Again, these are signs of extreme pessimism and a massively crowded trade. Remember, not all crowded trades are to the long side. If the short sellers capitulate, Trump Media shares could gain a lot of value very quickly.

Most importantly, investors should think about Trump Media’s purpose. Not everyone is enamored with X (formerly Twitter) and other social-media platforms.

If conservative voices need a home and dissatisfied content consumers seek an alternative outlet, Trump Media could fill a void in a potentially lucrative market.

Don’t Be Too Quick to Judge Trump Media Stock

It may be difficult to separate Trump Media & Technology Group as a business venture from your political beliefs. Yet, if you can set politics aside, you’ll be better positioned to envision the possible long-term growth trajectory of Trump Media.

That might be easier said than done when the social media gurus and short sellers are betting against Trump Media. However, that’s a setup that should appeal to contrarian, against-the-grain investors.

Therefore, we’re giving Trump Media stock an “A” grade and inviting you to conduct your due diligence on it .

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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