Trump Media & Technology Group

DJT

Market cap $3.07B

Trump Media has been expanding its business into many different areas, the latest being prediction markets. Despite the growth potential, however, the company has been struggling to increase sales.

Investors should be extra cautious when thinking about being contrarians and buying losers at the end of any calendar year.

Since its 2024 merger, Trump Media has reported low quarterly revenues with no growth. Operating expenses, meanwhile, have been larger and have increased.

There was a potentially industry-rocking development buried in the quarterly results from Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT). The owner of European brands such as Paddy Power and BetFair, as well as FanDuel in the US, is moving into one of the buzziest corners of the US fintech-meets-gambling world: prediction markets.

Less than a year into Donald Trump's second term, the optimism that once surrounded Trump Media & Technology Group (TMTG) has sharply faded. The company behind Truth Social reported another steep quarterly loss as revenue declined and expenses climbed, underscoring its struggle to turn political visibility into financial stability.

Investor sentiment towards US-exposed bookmakers such as Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT), Draftkings Inc (NASDAQ:DKNG) Entain PLC (LSE:ENT) is currently dominated by "caution and fear" due to the rise of prediction markets. This was one of the key takes from the Berenberg leisure analysts after a trip to the US, where they encountered “the most concern and fear we have felt since 2022” due to the fast-developing prediction market space and a fear that it will eat the lunch of the sports betting and iGaming industry.

Trump Media & Technology Group reported a bigger third-quarter loss and a decline in revenue on Friday, squeezed by a surge in expenses, highlighting the Truth Social parent's steep financial hurdles.

Trump Media & Technology Group Corp. (NASDAQ:DJT) shares traded slightly higher in Friday's premarket session after the company accused federal investigators of secretly accessing its banking information.

Digital prediction markets are drawing in throngs of users—and investors.

Trump Media and Technology Group said on Tuesday it will introduce prediction markets on its social media platform Truth Social through a partnership with Crypto.com, as event-driven markets continue to make inroads into mainstream finance.