TV personality Jim Cramer shares his views on the trading of former President Donald Trump’s Trump Media & Technology Group Corp (NASDAQ:DJT) on Nasdaq.
What Happened: “Like him or hate him know that this stock is overvalued….,” Cramer, on Wednesday, posted on X, formerly known as Twitter.
Cramer was reacting to a media report suggesting that Trump’s Truth Social is being traded akin to a meme stock, with its market value disconnected from its financial fundamentals.
Meanwhile, Cramer during his show on CNBC said that despite the high price, the stock is “almost like a keepsake” for Trump’s supporters.
As the stock price increases, Trump’s ability to raise more funds also grows. Cramer further suggested that if the stock continues to climb, Trump might request the board, where his son Donald Trump Jr. is a member, to lift the lock-in period of six months, enabling him to sell his shares.
Why It Matters: Trump Media & Technology Group, founded and majority-owned by Trump, went public following a merger with Digital World Acquisition Corporation. Despite several setbacks, including shareholder vote delays and legal actions, the company is now trading under the ticker DJT.
However, experts have advised caution to investors eager to support Truth Social. They highlight Trump’s history of financial failures and Truth Social’s modest user base compared to its competitors.
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