Trump Media’s Fusion-Fueled Rally Unravels As New Epstein Disclosures Put Political Risk Back In Play

• New DOJ documents in the Jeffrey Epstein case reveal a previously undisclosed rape allegation against President Donald Trump.
• Trump news unrelated to his media firm, Trump Media, often drives activity in the DJT stock, increasing risk for investors.
• Earlier this month, Trump Media announced a merger with fusion tech firm TAE Technologies; the stock lost some of the gains from the deal announcement last week.

Fresh disclosures about President Donald Trump’s ties to convicted sex offender Jeffrey Epstein have sparked widespread debate among retail traders, weighing on sentiment toward Trump Media & Technology Group Corp. The discussion comes just as the stock had generated buzz following the company’s unexpected move into nuclear fusion.

The Stocktwits sentiment for DJT shifted to ‘bearish’ last Friday, and has remained in that territory since, after the Justice Department published thousands more files related to its investigations into Epstein, including a case file that references a rape allegation involving Trump, as well as correspondence stating that Trump traveled on Epstein’s private jet many more times than previously known.

The development dulled the positive momentum generated by Trump Media’s $6 billion deal with TAE Technologies, announced on Dec. 18, which had sparked buzz over the company’s pivot toward the futuristic but still-unproven fusion technology. Shares rallied over 40% that day.

Since its public market debut in early 2024, DJT stock has frequently swung due to Trump’s moves unrelated to his Trump Media business, creating significant risk for investors. 

DJT shares fell about 10% earlier this year amid a high-profile public feud between Trump and Tesla CEO Elon Musk, after the President threatened to withdraw government support for Musk’s companies. The clash also rippled through other Trump-linked assets in the market. Meanwhile, Trump has leaned heavily on his Truth Social platform to promote his agenda, even as the underlying performance of his media firm paints a rather dull picture.

Still, investors have kept up, with the watcher count for DJT increasing by 12% and message volume rising by 16% on Stocktwits over the past year.

Last week, the newly released DOJ documents in the Epstein case included an FBI case file dated October 2020, containing an allegation of rape involving Trump. The document does not identify the source of the allegation, as names and other identifying details have been redacted. 

They also included an attorney general’s submission claiming that Trump flew at least eight times on Epstein’s private jet between 1993 and 1996, with one flight having only Trump, Epstein, and an unnamed 20-year-old woman as passengers.

The files, which include photos, videos, and documents, were highly anticipated after Congress last month passed a law mandating their release in their entirety by Dec. 19. The DOJ had earlier said it would not be able to meet the deadline; meanwhile, the releases so far have contained extensive redactions, drawing heavy criticism.

The new information has been an overhang for DJT. The stock has declined 7.5% since the announcement of the TAE Technologies deal, and is down 60% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on