From Nasdaq: 2024-03-29 16:09:27

Shares of Trump Media and Technology Group (NASDAQ: DJT) surged 67.7% this week as the company merged with a SPAC and entered the public markets. With a $10 billion market cap and minimal revenue, investors are trading the stock heavily. However, experts caution against the hype, citing the company’s high valuation and financial performance.

The merger with Digital World Acquisition Corporation brought Trump Media Group to the public markets, raising around $300 million. Despite only generating $3.4 million in revenue in the first nine months of 2023, the company is valued at $8.39 billion, leading to a trailing P/S ratio over 1,000. Smart investors are advised to avoid the stock due to its lack of intrinsic value.

The Motley Fool Stock Advisor team did not include Trump Media & Technology Group in their list of 10 best stocks for investors to buy now. The service, known for providing guidance on portfolio building and stock picks, has significantly outperformed the S&P 500 since 2002. Experts warn potential investors to carefully consider the risks before buying shares in the company.



Read more at Nasdaq: Why Trump Media Stock Zoomed Higher This Week