Concerns Rise Over Trump Media’s Strategy Amid Stock Surge

Whistleblower Claims Raise Questions About Hiring Practices

A whistleblower complaint has cast doubt on Trump Media & Technology Group Corp DJT. Allegations against CEO Devin Nunes suggest that he is implementing an “America Last” hiring policy, contradicting the company’s “America First” doctrine.

Reported by ProPublica, the complaint claims that rather than employing American workers, Nunes has turned to foreign contractors. This approach conflicts with Trump’s longstanding promise to reduce outsourcing.

The whistleblower document, reviewed by ProPublica, demands Nunes’ removal due to claims of mismanagement and increasing legal liabilities. It’s noted that critical company operations are reportedly suffering under his oversight, with accusations of placing unqualified friends in significant roles. The letter, allegedly signed by over half of the staff, indicates that the company’s mission is being compromised.

Benzinga has reached out to Trump Media & Technology Group for their comments concerning the ProPublica report.

DJT Stock Soars Despite Absence of Revenue

In a surprising twist, DJT stock has experienced an impressive surge, increasing nearly twofold since mid-September. In fact, the stock has risen by 143.46% over the past month alone.

This growth has positioned DJT as a popular choice among meme-stock investors, especially as traders speculate on Trump’s chances in the upcoming elections. Remarkably, this rise occurs despite Truth Social, the firm’s main platform, generating minimal revenue.

Read Also: Market ‘Very Convinced’ Of A Trump Win, Says Stanley Druckenmiller: Why Billionaire Investor Thinks Blue Sweep Is ‘Highly Unlikely’

Chart created using Benzinga Pro

Market analysis reveals DJT stock is currently trading above its eight, 20, and 50-day moving averages, indicating bullish market activity. However, caution is warranted as its 200-day average points to potential bearish trends.

Chart created using Benzinga Pro

The Moving Average Convergence/Divergence (MACD) indicator remains positive at 3.24, yet the Relative Strength Index (RSI) stands at 68.32, indicating it is nearing overbought conditions.

Impact of Internal Drama on DJT’s Market Performance

Currently, DJT stock is trading around $30 per share, with traders enjoying the associated volatility. However, the claims within the whistleblower complaint could attract regulatory scrutiny, potentially undermining the stock’s rapid rise.

ProPublica’s findings suggest that if the board fails to respond appropriately, Trump Media may face a public relations crisis, leading to a decline in investor confidence.

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