Why Trump Media & Technology Group (DJT) Is Among Tuesday’s Worst Performers?

We recently published a list of 10 Stocks Nosedive, Defying Broader Optimism. In this article, we are going to take a look at where Trump Media & Technology Group Corp. (NASDAQ:DJT) stands against other stocks nosedive, defying broader optimism.

Ten companies—predominantly Bitcoin miners—kicked off this week’s trading on a sour note, bucking an overall market optimism, following the lack of fresh developments to spark buying appetite.

On Tuesday, the Dow Jones rose by 1.24 percent, the S&P 500 rose 0.88 percent, while the Nasdaq Composite increased 0.64 percent.

In this article we will look at Tuesday’s worst performers and explore the reasons behind their drop.

To come up with Tuesday’s top losers, we considered only the stocks with at least $2 billion in market capitalization and $5 million in daily trading volume.

Trump Media & Technology Group Corp. (NASDAQ:DJT)

Trump Media & Technology Group Corp. (NASDAQ:DJT) fell by 11.09 percent on Tuesday to close at $35.59 each as investors repositioned their portfolios while waiting for further developments about further plans from the administration.

An analyst had already expected a sell-off following Monday’s inauguration. According to the analyst, “an ensuing slide in these stocks accompanied by strong retail buying would imply institutional investors front-ran retail traders, using them as exit liquidity, thus leaving prices to muddle through thereafter.”

Trump Media (NASDAQ:DJT), which is owned by the president-elect, is an American media and technology company headquartered in Florida. It runs the Truth Social social media platform.

Trump Media (NASDAQ:DJT) has remained in a precarious financial position over the past couple of years. The company reported yet another quarterly loss in its third-quarter earnings last November. In the three months ended Sept. 30, Trump Media lost $19.2 million, with revenue falling 5.6% to just $1.01 million from a year earlier.

Overall, DJT ranks 3rd on our list of stocks nosedive, defying broader optimism. While we acknowledge the potential of DJT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DJT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.