How Kamala Harris’s Entry Into Presidential Race Could Impact Trump’s Media Empire and Investors
Kamala Harris’s growing momentum in the presidential race may spell trouble for Donald Trump’s bid for the White House and his media empire, specifically Trump Media and Technology Group (NASDAQ:), which owns Truth Social.
Investors who have bet on Trump’s media empire could face significant losses as Trump’s decision to sell his stake of 114 million shares valued at $2.3 billion looms after the lockup period ends in late September.
The failed assassination attempt in July has already caused Trump Media stock’s value to nearly halve, and with Harris’s influence growing and Trump’s prospects diminishing, further declines could be on the horizon.
Investors holding DJT shares are now faced with a tough decision: stick with Trump and hope for a turnaround or cut losses.
Fair Value Suggests Potential Downside
InvestingPro’s data indicates a high risk for DJT investors, with a potential further decline of 35.7% based on unique investment models. The company’s financial health is in question, with a benchmark index rating of just 1 out of 5.
Unlike platforms like Facebook and Instagram, owned by Meta Platforms (NASDAQ:), Trump Media and Technology Group is struggling to find its footing and recent financial reports reveal losses exceeding $16 million in just three months.
Investors need more than just analysis – they need faith in Trump’s fortunes and his decisions regarding the stock.
Analysis: Kamala Harris’s entry into the presidential race could impact not only Donald Trump’s political ambitions but also his media empire and investors who have bet on it. With Trump’s potential decision to sell his stake in Trump Media and Technology Group looming, investors face the risk of significant losses. The company’s financial health is precarious, and uncertainty remains high, making it a challenging investment. Investors must carefully consider their options and the potential risks involved in light of the changing political landscape and Trump’s future decisions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All investments carry risks, and investors should conduct their own research before making any investment decisions.