Trump Media (DJT) Plunges 2.06% Amid Trump-Musk Feud

Trump Media Technology (DJT) shares fell 2.06% today, marking the fourth consecutive day of decline, with a total drop of 8.01% over the past four days. The share price plummeted to its lowest level since April 2025, experiencing an intraday decline of 4.26%.

The strategy of buying DJT shares after they reach a recent low and holding for one week resulted in significant underperformance. The strategy yielded a return of -61.79%, compared to a benchmark return of 14.26%. The excess return was -76.05%, and the CAGR was -54.95%, indicating a substantial loss over the backtested period. The strategy also had a high maximum drawdown of -85.22% and a Sharpe ratio of -0.43, reflecting a challenging risk-return profile.

The recent volatility in Trump Media's stock price can be largely attributed to the public dispute between former President Donald Trump and Elon Musk. This ongoing feud has captured significant attention and appears to be influencing market sentiment towards the company. The public spat has led to increased scrutiny and speculation, contributing to the stock's downward trend.

Despite the negative impact on the stock price, some analysts believe that the dispute could also present an opportunity for Trump Media to differentiate itself in the market. The company has been actively working on expanding its user base and enhancing its platform, which could potentially mitigate the effects of the public feud. However, the immediate impact on investor confidence remains a concern, as the market continues to react to the ongoing controversy.

Looking ahead, Trump Media will need to navigate the challenges posed by the public dispute while continuing to focus on its strategic initiatives. The company's ability to manage this situation and maintain investor trust will be crucial in determining its future performance. As the market continues to evolve, Trump Media's response to these challenges will be closely watched by investors and analysts alike.