DJT Shares Jump on TAE Technologies Deal as Retail Investors Call It 'Old School Penny Stock'

"Shares of Trump Media & Technology Group (NASDAQ:DJT) surged on December 18 after announcing a $6 billion all-stock merger with fusion energy company TAE Technologies. But retail investors aren't buying the hype. Reddit sentiment collapsed from 78 to just 22 out of 100 immediately following the announcement, with the main discussion thread on r/stocks drawing 972 upvotes and 164 skeptical comments. The disconnect is striking."

"In the post, cheddarben wrote: "Old school penny stock with bizarro news. I am sure it will be a wild ride." The characterization of Trump Media as operating like a penny stock resonated widely with commenters expressing similar skepticism. Top-voted comments echoed this skepticism. Reddit user Unlucky-Clock5230 commented: "This is the most obvious pump and dump I've ever seen. The fundamentals are absolutely terrible.""

"The disconnect is striking. While the stock posted strong single-day performance, retail traders are treating the news with deep cynicism rather than celebration. Retail investors have legitimate concerns: Trump Media trades at a staggering 797x price-to-sales ratio with just $3.68 million in trailing revenue. The company posted negative EBITDA of $175.8 million and a net loss of $54.8 million last quarter. Revenue declined 3.8% year-over-year, moving in the wrong direction"

Trump Media & Technology Group announced a $6 billion all-stock merger with fusion energy company TAE Technologies, sending DJT shares sharply higher on December 18. Retail investor sentiment on Reddit collapsed from 78 to 22 out of 100 immediately following the announcement, and the main r/stocks thread recorded 972 upvotes with 164 skeptical comments. Reddit users labeled the company an 'old school penny stock' and called the deal a potential 'pump and dump,' citing TAE's long history of unmet fusion timelines. Financial metrics cited include a 797x price-to-sales ratio, negative EBITDA of $175.8 million, a $54.8 million net loss, and a 3.8% revenue decline year-over-year.

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