In just two weeks, Trump Media has seen a significant decline of over 35%, causing a flurry of negative issues to arise. As the third quarter approaches, the company faces three critical challenges that could further impact its stock price. The drop in stock prices has prompted investors to reevaluate their confidence in Trump Media’s fundamentals and prospects.
The technical picture for Trump Media in 2024 is looking grim, with the stock price hitting a peak of $80 in March and subsequently plummeting. Despite several attempted breakouts at the $50 level, the stock has failed to regain its momentum, leading to a continued decline. The emergence of various technical negatives suggests that the company may be headed for further losses in the near future.
Looking ahead to the next quarter, Trump Media is facing strong headwinds that could exacerbate its struggles. One major issue on the horizon is the registration of all outstanding shares that have not yet been registered, totaling 177 million shares – three times the current number of registered shares. Additionally, the company recently filed an amendment to its S-1 submission, indicating ongoing regulatory scrutiny that could impact the stock’s performance.
In light of these challenges, Trump Media’s August earnings release covering the second quarter through June 30 will be crucial in determining the company’s financial health. With a significant number of newly registered shares becoming available for sale in September, management will need to effectively communicate the benefits of staying invested to prevent a mass exodus of shareholders looking to offload their shares.
To navigate these turbulent times, Trump Media executives will need to prioritize communication and transparency with investors. By providing regular updates and meaningful insights into the company’s performance, management can instill confidence in shareholders, analysts, and the wider media. Failure to address concerns and provide clear guidance could further erode investor trust and lead to continued declines in the stock price.
