The Trump election and inauguration effects on Trump Media’s stock appear to be over. So now Trump Media’s business activities and results take on more importance.
By the end of February, the company will furnish its 2024 annual report. Besides the revenues, earnings, cash flow, and other material information, investors should expect fulsome descriptions of management’s views, strategies, and outlooks.
However, management has provided little such information in the past quarterly reports. That absence makes the coming annual report especially important. Will it finally reveal actual growth results? One possible potential indicator of the answer is the stock’s performance – particularly, its inability to break above the major $35 barrier. (The Friday, January 31, closing price was below $32.)
Here is the picture of the daily price moves from January 2024.
Here is another view using a candlestick graph of weekly price movements.
Note: Green means the stock rose from the week’s opening price to the week’s closing price. Red means it declined. Important: In examining a stock’s action, a move in one week can be misleading. It takes two consecutive weekly moves to confirm a possible shift. With Trump Media, it has built a record of failures to break above the $35 barrier. Therefore, be wary of owning the stock until it can produce a confirmation of an uptrend.
The bottom line: When fundamentals are weak, the technical picture is especially important
With Trump Media stock having a much lower fundamental valuation than its price, those two charts are key indicators of the stock’s trend. Therefore, the stock’s inability to break through the major barrier of $35 is a negative sign, perhaps based on weak company operations and low potential growth. Moreover, that means further price deterioration may increase investors concern that a new downtrend is in the making.