Trump Media & Technology Corp Faces Bearish Outlook Amid Technical and Fundamental Weakness

Technical Analysis

As of March 13, 2025, Trump Media & Technology Group Corp. (ticker: DJT) closed at $19.17, representing a 4.48% decline for the day. The recent trading range saw lows of $19.13 and highs of $21.34, indicating volatility ahead of its resistance level at $19.92. The year-long view shows a significant drop-off from a high of $79.38 to a low of $11.75, emphasizing a bearish trajectory.

The relative strength index (RSI14) is alarmingly low at 19, implying that the stock is heavily oversold. The MACD, a momentum indicator, stands at -3.405, further demonstrating bearish sentiment. Additionally, the 50-day and 200-day moving averages at $30.14 and $30.00, respectively, indicate a stark downtrend as the stock price languishes well below these averages.

The average true range (ATR) of 8.48 indicates high volatility, suggesting the potential for continued unpredictable price movements.

Fundamental Analysis

DJT's fundamentals paint a challenging picture. The company has a negative earnings per share (EPS) of -$2.36 and a negative price-to-earnings ratio (PE) of -8.12, reflecting ongoing losses and lack of profitability. The market cap rests at approximately $4.22 billion, a figure unsupported by positive earnings, posing significant concerns about valuation and sustainability.

Recent financial news indicates a lack of buyer interest and declining trading volume, now standing at 3,108,430 against an average of 8,306,588, suggesting diminished investor confidence. Additionally, a lack of support levels suggests vulnerability to further declines. The discounted cash flow (DCF) metric, fantastically low at 0.86, implies an overvaluation compared to intrinsic value assessment.

Predictions

For the next trading day, March 14, 2025, DJT is likely to continue its downward momentum due to technical and fundamental weakness. The stock may test the support levels around $19 if volume remains tepid and sentiment doesn't improve.

Looking at the week ahead, DJT may struggle to breach the resistance at $19.92 unless it experiences a shift in sentiment or external catalysts. Given current market conditions and news sentiment, fluctuation around this level is likely, with risks skewed to the downside.

Intrinsic Value and Long-term Investment Potential

From an intrinsic value perspective, the DCF analysis indicates that DJT is significantly overvalued relative to its current fundamentals. The company's negative earnings, poor liquidity metrics, and market sentiment are substantial red flags for long-term investors. The lack of a clear growth strategy or path to profitability reduces its attractiveness as a long-term investment.

Overall Evaluation

Based on technical and fundamental analyses, Trump Media & Technology Group Corp. appears to be a 'Sell' candidate at present. The combination of technical indicators pointing to continued weakness, unfavorable earnings data, and skeptical market sentiment creates a bearish outlook. Furthermore, recent negative news draws attention to diminishing investor interest, underscoring the stock's challenges in sustaining or growing its value.