The Trump Media & Technology (DJT) stock price will be in the spotlight on Friday as investors reflect on the Trump vs Biden debate. It has rebounded from $24.95 on June 21st to over $35, giving it a market cap of more than $6 billion.
Joe Biden debate performance
The DJT share price will be in focus after Joe Biden’s debate performance led to panic among Democrats and rising hopes that Trump will win. In a Tweet, Billionaire Bill Ackman said that Trump would win in a landslide.
The same sentiment was shared among most Democrats, with Chuck Todd saying that there was panic among party leaders. Joy Reid, an MSNBC host, warned that her phone kept buzzing during the debate as concerns rose.
Nicole Wallace and Van Jones, well-known Democrats, warned that the debate about replacing Joe Biden would start soon. The expectation is that Barrack Obama and Nancy Pelosi will convince Biden to step aside.
Some analysts believe that Biden will be replaced by Michelle Obama or Gavin Newsom, California’s governor. Such a move would be bad for Donald Trump because they are relatively younger than him.
The debate will not have a major impact on Trump Media & Technology, a company whose finances and growth are not doing well. However, it could have an impact on the stock as traders bet that he will win.
These odds have helped the stock to do relatively well in the past few months even as its fundamentals worsened. It has rebounded by over 60% from its lowest point in April, giving it a valuation of over $6 billion.
That is a pricey valuation for a company that is no longer generating substantial revenue and one that lost over $327 million in the last quarter. In contrast, X (Twitter) is valued at about $20 billion while Reddit, which has millions of users, has a valuation of $10.4 billion.
DJT stock price forecast
The daily chart shows that the Trump Media & Technology stock price peaked at $79.35 in April and then retreated to the current $36.73. It remains below the 50-day and 100-day Exponential Moving Average (EMA).
The Relative Strength Index (RSI) is nearing the neutral point while the two lines of the MACD have formed a bullish crossover. Therefore, the stock will likely have a bullish breakout as buyers target the key resistance point at $56.52, the highest point on May 10th, which is 54% from the current level.
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