Shares of Truth Social parent Trump Media & Technology (DJT) remain a hot topic on Reddit’s meme stock forums. As President-elect Donald Trump’s inauguration approaches, the stock is showing signs of shaking off its meme stock reputation.

On Friday, DJT stock closed at $40.03, down 2.4% after peaking at $43.46 during the session. The stock has gained over 17% in January, reflecting heightened interest ahead of Trump’s January 20 inauguration.

DJT Stock Performance and Sentiment

Often seen as a sentiment indicator for Trump, DJT stock has displayed extreme volatility. It soared to $46.27 on July 15 following an assassination attempt against Trump and a surge in poll numbers. Conversely, after a September presidential debate, shares dropped to $11.75.

Since Trump’s election win in November, the stock has risen 16%, though its 12-month journey has ranged from a high of $79.38 to a low of $11.75, with a current 127% annual gain.

Meme Stock to Growth Stock?

DJT’s status as a meme stock has been driven by retail investor activity, particularly on Reddit forums like r/WallStreetBets. However, the stock’s current Average True Range (ATR) of 2.4 suggests reduced volatility compared to other meme stocks like Tesla (ATR 25) or Carvana (ATR 11.6).

Chart analysis indicates the stock has found support at its converged 50-day and 200-day moving averages. Its relative strength rating, now at 90, signals improving performance compared to the S&P 500.

Ownership Changes

Donald Trump previously held a 60% stake in Trump Media. However, he transferred his 114.75 million shares to the Donald J. Trump Revocable Trust in December. The trust, controlled by Donald Trump Jr., now holds voting and investment power over the shares.

Trump Media reported a 5.6% revenue decline in its latest quarter, with total earnings at $1 million. Despite these figures, the stock may be maturing, with some signs of stability emerging.

Investor Considerations

DJT stock advanced 95% in 2024 but remains 50% below its record high. Its 62 Composite Rating is below the threshold for typical growth stocks, and FactSet reports no analysts covering the company.

While the stock shows signs of stabilization, its future remains closely tied to the president-elect’s political moves and the broader market sentiment surrounding Trump Media.

Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.