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DJT Stock Reverses Gains after 51% Surge-What Went Wrong?

DJT

Trump Media & Technology Group (DJT) grabbed the market’s attention with more than a 50% jump last week before retreating from $16.81 to drop 10% on Monday, ending the day around $14.41.

With this, the firm’s market capitalization (market cap), the total value of the firm derived by multiplying the share price by the number of shares issued, eased to $4.035 billion at the latest. Meanwhile, the trading volume hit a 13-month high on Thursday before retreating to 33.27 million of late.

DJT’s stellar performance could be tied to news of a merger between the Trump Media & Technology Group (DJT) and a fusion power company, TAE Technologies.

Following the run-up in the DJT stock price, buzz surrounding a $500 million increase in U.S. President Donald Trump’s fortune grabbed investor attention.

The DJT-TAE Deal

The details about Trump’s family-linked firm, DJT’s merger deal, suggest an all-stock agreement of more than $6.00 billion to build one of the world’s first publicly traded fusion companies.

That said, Trump Media will be the holding company for Truth Social, Truth+, Truth.Fi, TAE, TAE Power Solutions, TAE Life Sciences, etc. Furthermore, the first utility-scale fusion power plant will start construction in 2026.

Notably, TAE Technologies is a Google-backed fusion energy company, and hence the DJT-TAE merger flags fears about Trump’s dominance in nuclear energy and conflict of interest.

The merger is yet to be approved by the U.S. federal regulators, but considering the fact that Trump has nominated a few of them, it eased the market’s uncertainty

Top Financials for DJT

Although the DJT-TAE merger news fueled the stock price last week, the firm’s core financial details are less lucrative.

According to the latest earnings report, Trump Media & Technology Group’s earnings fell nearly 41%, versus the revenue growth rate of around 10%, on average, during the past five years.

The November 07 earnings report from the DJT showed a total revenue for the third quarter (Q3) of 2025 at $972.90K, down 2.76% on the year, whereas the Net Income posted a -$54.81 million figure, down 45.58%. That said, the Earnings per Share (EPS), the per-share earnings of the company, reported a 106% slump to $0.20.

Potential Hurdles for the Deal

Although the federal regulators seem to pose a less significant obstacle for the DJT-TAE merger deal, the political landscape reveals a multitude of factors that could jeopardize a potentially advantageous move by a company affiliated with U.S. President Trump.

Among them, the ethics concerns surrounding U.S. President Donald Trump’s involvement gained major attention, as nuclear fusion research and practices are regulated by the federal government, which is currently under Trump’s ruling.

Another argument challenging the DJT stock is that fusion energy is still not commercially viable, and hence the firm will need to take loans, credits, and research from outside, which in turn could be gained through Trump’s political influence.

Rep. Don Beyer, a Democrat from Virginia who co-chairs the House Fusion Energy Caucus, crossed wires the last week while saying that he was “stunned” by the deal. Rep. Don Beyer, a Democrat from Virginia and co-chair of the House Fusion Energy Caucus, also expressed his distaste for the idea of a president using his affiliation with the Kennedy Center to determine the winners and losers in fusion energy.

DJT Stock Price Action

The stock price of Trump Media & Technology Group rallied 51% last week, during its two-day surge, before falling over 10% on Monday. With this, the DJT braces for the first monthly gain in eight months, as well as faces the first yearly loss in three. It’s worth mentioning that the DJT price hit a record low of $10.18 last Monday.

DJT Stock Price: Daily Chart Highlights “Falling Wedge”

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DJT Stock Reverses Gains after 51% Surge-What Went Wrong? 3

Notably, the DJT’s latest retreat defends a “Falling Wedge” bullish chart pattern since February, highlighting the $17.00 resistance.

Meanwhile, the 200-day Exponential Moving Average (EMA) of $18.08 has also been restricting DJT’s upside since January, making it a crucial resistance for the bulls.

That said, the 50-day EMA of $13.09 acts as immediate support to watch over the quote’s fresh weakness.

What Next?

The DJT-TAE merger got investors’ attention toward the Trump-linked firm. However, political criticism surrounding the deal, unimpressive financial details, and technical hurdles restrict optimism post the initial reaction.

Also read: Crypto Weekly Price Prediction: BTC Consolidated below $90K amid Holiday Season!

Final Take

Trump Media & Technology Group (DJT) rallied 51% last week on news surrounding its merger with a Google-backed fusion energy firm, TAE Technologies. However, a slew of challenges stand tall to restrict optimism surrounding the DJT stock, requiring a strong positive catalyst and sustained earnings to convince bulls.

Disclaimer: All content provided on Times Crypto is for informational purposes only and does not constitute financial or trading advice. Trading and investing involve risk and may result in financial loss. We strongly recommend consulting a licensed financial advisor before making any investment decisions.

Anil Panchal is a seasoned analyst, specializing in crypto price action, macro trends, and cross-asset market dynamics. He holds a Master’s degree in Finance and brings over a decade of experience analyzing global markets, including Forex, Equities, Commodities, and Cryptocurrencies. Anil has previously contributed his expertise to leading institutions such as Edelweiss and FXStreet.

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