DJT Shares Surge on TAE Technologies Deal as Retail Investors Question Valuation

Summary:
  • DJT stock surges on heavy volume after the TAE Technologies deal, valuation risks,volatility keep investors divided on Trump Media’s outlook.

Trump Media & Technology Group is a social media and technology-focused company best known for its flagship platform, Truth Social. The company also operates Truth+, a streaming service available across iOS, Android, and web platforms, supported by its own custom-built content delivery network. Together, these products position Trump Media as a digital media ecosystem rather than a traditional social platform.

Shares of Trump Media have returned to the spotlight after the company announced a major strategic deal involving fusion energy firm TAE Technologies, triggering a sharp single-day rally that has reignited debate around the stock’s fundamentals and long-term direction.

DJT Stock Surges From Long-Term Support as Volume Spikes

The weekly chart for Trump Media & Technology Group shows DJT rebounding sharply from the $10–$11 support zone, a level that has repeatedly acted as a floor over the past year. Shares have jumped to around $14.8, marking a gain of nearly 40% in a single week and confirming a high-momentum bounce rather than a gradual recovery.

This move comes after an extended downtrend from the stock’s 2024 highs above $40, with the chart highlighting a pattern of sharp rallies followed by prolonged pullbacks. The latest surge stands out due to a significant increase in trading volume, signalling renewed speculative interest after months of subdued activity.

DJT chart today December 19 2025 Created on TradingView

Despite the rebound, DJT remains well below its prior cycle peaks, reinforcing that the current move is a volatility-driven rally off long-term lows rather than a confirmed trend reversal.

Retail Investors Push Back on the Rally

Despite the sharp price move, sentiment among retail traders remains deeply divided. On Reddit, discussion around DJT turned notably sceptical following the deal announcement, with many users describing the stock as behaving more like a speculative penny stock than a media company with durable fundamentals.

Highly upvoted posts questioned whether a social media platform with declining revenue could justify a multi-billion-dollar valuation by pivoting toward fusion energy, a sector that has promised breakthroughs for decades but remains commercially unproven. Concerns around dilution, execution risk, and headline-driven trading dominated the conversation rather than optimism about long-term value creation.

Is DJT Stock Overvalued After the Recent Rally?

Despite the sharp rebound, questions around DJT’s valuation remain unresolved. The stock’s recent gains have been driven more by trading activity and headline momentum than by any material improvement in the company’s underlying business. Revenue remains limited, losses persist, and the valuation still implies expectations that are difficult to justify based on current fundamentals.

That gap becomes clearer when viewed against the wider market. While DJT has moved in fast, speculative bursts, the S&P 500 has delivered steady gains of around 15% this year. For investors, the comparison underscores a familiar risk: short-term rallies can be eye-catching, but without earnings support, they tend to leave valuation concerns firmly in place.

What the TAE Technologies Deal Signals for DJT

TAE Technologies has raised more than $1 billion since its founding in the late 1990s and plans to develop a 50-megawatt fusion facility by 2026. For Trump Media, the deal represents a bold attempt to reposition itself beyond social media and streaming. However, for many market participants, the move raises more questions than answers.

From an investor perspective, the rally appears driven by narrative rather than fundamentals. Until Trump Media demonstrates a clearer path to sustainable revenue growth or tangible returns from its new strategic direction, DJT is likely to remain a high-volatility trade rather than a conviction long-term investment.

For now, the stock’s latest surge highlights a familiar pattern: sharp moves fuelled by headline announcements, followed by renewed scrutiny once the excitement fades.

How much of DJT does Donald Trump own?

Donald Trump remains the majority shareholder of Trump Media & Technology Group through a trust, giving him effective control over the company despite public share trading.

Is Truth Social still losing money?

Yes. TMTG reported Q3 2025 revenue of $972,900, down 3% year over year, while posting a net loss of $54.8 million, with legal expenses alone reaching $20.3 million.

Will DJT stock go up soon?

Near-term direction remains uncertain. Independent smart score models suggest DJT is likely to underperform the broader market over the next 12 months due to weak fundamentals and high volatility.

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