By Michelle Conlin
NEW YORK (Reuters) – One night in late October, Whitney Patterson spotted a YouTube video about people buying shares in Trump Media & Technology Group, the U.S. president-elect’s social media and streaming company.
Patterson had never heard of Trump Media and had never invested in a stock on her own. But that night, Patterson, whose family owns a pickle business, moved a third of the cash in her retirement fund into Donald Trump’s company.
About a week later, she voted for him too.
Patterson said because Trump has vowed to never sell, neither will she. She believes the shares will become so valuable they will provide a legacy for the three young daughters she schools in her Pittsburgh home.
“I know how important Truth Social is going to be in my lifetime and for my girls’ future,” said Patterson, of the social-media platform owned by Trump Media. “I’m not pulling out.” She did not want to publicize the amount she invested.
Patterson, 45, is one of 600,000 retail investors whose fortunes are linked with those of the president-elect they support, and they see Monday’s inauguration as a turning point for the stock.
Trump owns a 53% stake worth $4.6 billion. Retail investors are the company’s second-biggest ownership group, owning more than a quarter of it.
Some of the 39,000-member $DJT stock group on Truth Social gathered in Washington, D.C., over the weekend to pass out company swag and then watch Trump take office for the second time on Monday.
“This is a landmark moment for Trump and for the stock,” said Patterson, who will watch from afar.
In thousands of messages on social media stock chat groups, and in more than a dozen interviews, Trump Media’s small investors professed the same never-sell approach that animated GameStop (NYSE:GME) mania and the bitcoin frenzy that saw the cryptocurrency break $100,000 after the November presidential election.
“I knew nothing about the stock market but I bought mainly for my support and belief in Trump,” said George L. Paschall, 46, who works for a flooring company in Saginaw, Michigan.
Investors say they are well aware of Trump Media’s status as a meme stock, one that gains popularity through social media. But they say they are impervious to its wild price swings because they believe the company, which served as a proxy for Trump’s election odds, will become more valuable as Trump returns to the White House.
In social-media posts and interviews, they speculated that X owner Elon Musk and Trump could merge their social-media platforms. They also point to efforts by Trump Media to investigate the possibility of naked short selling before the election.
Others say they believe that by investing, they are supporting the “patriot economy.” As Trump’s presidency begins, “the momentum and support will be unstoppable,” Patterson said.
Shares closed on Friday at $40.03, up 18% since Election Day but down from their 2024 high of $79.38 in March. The stock fell last year as low as $11.75 in September.
In the weeks after Trump won the election, informal polls taken in Trump Media chat groups predicted the stock hitting $120, $1,000 or $1,776 before Inauguration Day.
The company’s $8.7-billion market cap remains detached from its business fundamentals. On election night, it reported a third-quarter net loss of $19.2 million on revenue of $1 million, with a cash balance of $672.9 million.
“DJT remains a typical meme stock with a loyal retail holder base that trades on speculation, opposed to fundamental value,” said Matthew Unterman, managing director of analytics firm S3 Partners.
The Trump Organization, the Trump transition team and Trump Media did not respond to requests for comment. GOLF CLUBS TO SOCIAL MEDIA When Trump left the White House in January 2021, his net worth was $2.4 billion, according to Forbes magazine. His holdings were made up of real estate, private country clubs and licensing deals.
Forbes now estimates Trump’s net worth at $6.7 billion. His stake in Trump Media makes up, on paper, the biggest chunk of his fortune. Trump has nominated three Trump Media board members to serve in his administration.
That does not include the value of a digital token called $Trump, branded with an image from Trump’s attempted assassination in July, that Trump launched Friday night during the first-ever, black-tie Crypto Ball (NYSE:BALL), whose VIP packages cost $100,000. Guests swilled cocktails and ate mini lobster rolls and Trump’s favored McDonald’s (NYSE:MCD) burgers and fries.
The price of that “meme coin” was around $60 Sunday morning, giving it a market cap of $12.23 billion, according to CoinMarketCap. Truth Social is far smaller in number of users than dominant social-media platforms. But in the fourth quarter of 2024, monthly active users on its mobile app were up 30% year-over-year as the platform benefited from international launches in countries such as Turkey, Argentina and Nigeria, according to market intelligence firm Sensor Tower.
In December, Trump transferred his Trump Media shares into a revocable trust controlled by his son, Don Jr. The Trump Organization said this month Trump will hand daily management of his holdings to his children when he takes office, repeating an arrangement he made during his first term that some ethics experts said still posed conflicts.
The stock’s retail faithful say they are banking on the next big bump.
As one $DJT stock group participant posted: “We are owners in a gold mine.”
