Trump Media (DJT 2.23%) stock recorded huge gains across 2024's trading. The company's share price ended the year up 94.9, according to data from S&P Global Market Intelligence. Meanwhile, the S&P 500 index's level climbed 23.3%, and the Nasdaq Composite index's level climbed 28.6%.
Trump Media stock started out this year trading under the "Digital World Acquisition Corp." name and the "DWAC" stock ticker. In addition to gains connected to the merger of Trump Media & Technology Group with the Digital World Acquisition special purpose acquisition company (SPAC), the stock also saw bullish momentum in conjunction with the presidential election and Trump's win in the race.
Trump Media stock surges on SPAC merger and political tailwinds
Trump Media stock started 2024 off with some big gains following his win in the Iowa Republican caucus. At the time, the stock was still trading as Digital World Acquisition because the merger with Trump Media & Technology Group had not been completed -- but it still surged due to expectations the combination would go through.
Shares then surged on March 25 after it was announced that the SPAC merger had been completed. From that point on, the company operated under the Trump Media banner and shares traded under the "DJT" ticker.
While Trump Media's share price slumped in the summer, the stock started to rise in the fall as investors and pundits started to think that it was becoming more likely that Donald Trump would win the presidential election. The company's share price soared in the rallied in the lead up to election day and saw some additional post-win gains before investors took profits and the stock retreated. But even with a valuation decline after the election, Trump Media stock still closed out last year with big gains.
Why is Trump Media stock climbing in 2025?
Despite a pullback for the broader market, Trump Media stock has actually managed to climb higher across 2025's trading. The company's share price is up 3.5% across the stretch as of this writing. Meanwhile, the S&P 500 index is down 0.8%, and the Nasdaq Composite index is down 0.9%.
Trump Media stock is gaining ground in the lead up to President-elect Trump's inauguration. Investors appear to be betting that Trump entering office will open up bullish avenues for the stock.
But while Trump Media has been on an impressive run, investors should probably be careful with the stock because the company's current valuation appears to be largely divorced from its fundamentals. Trump Media currently has a market capitalization of roughly $7.7 billion, but the business has been putting up little in the way of sales.
With its last financial update, the company announced that its core business had recorded just $1 million in sales in the third quarter. Engagement on the company's Truth Social platform has been relatively low, and the appeal of the platform could be lessened with other social media platforms now adopting more lax content moderation policies. So while it's possible that Trump's position as the next president and personal brand strength could create growth opportunities, the stock looks risky right now.
