Trump Media Stock (DJT) Drops on Talks of Truth Social Platform Spin-Off

FomoAnxiety · 2026-02-27T18:37:07+00:00

Trump Media & Technology Group is considering spinning off its social media platform, Truth Social, as part of a broader strategy following a planned merger with TAE Technologies. The move could offer clearer visibility into its various business sectors and address revenue concerns for Truth Social while enabling Trump Media to focus on energy and technology ventures.

FomoAnxiety

2026-02-27 18:37:07

Abstract generation in progress

Trump Media & Technology Group DJT -2.46% ▼ , TMTG, is weighing a spin-off of its social media platform, Truth Social, into a separate publicly traded company. The move is still in the discussion phase and is part of a broader strategic shift following the company’s planned $6 billion merger with the nuclear fusion firm TAE Technologies. DJT stock was down over 2% in Friday’s regular trading session.

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Under the proposal, existing Trump Media shareholders would receive shares of the new social media company before the TAE merger closes. That newly formed entity would then merge with Texas Ventures Acquisition III, a SPAC, allowing Truth Social to trade independently on the public markets.

Meanwhile, TAE’s fusion business and Trump Media’s remaining assets would stay with the original DJT‑listed company.

Why the Spin‑Off Matters

Truth Social has been central to Trump Media’s brand, but the platform has struggled to attract advertisers and has seen revenue soften.

Also, the potential spin-off signals a broader strategic shift. Trump Media is increasingly leaning into energy and advanced‑technology ventures, with the TAE merger aimed at tapping into the massive power needs of AI data centers.

TMTG has also expanded into financial services, launching investment products and building a cryptocurrency reserve.

Thus, separating the platform would give investors a clearer view of each business while allowing Trump Media to pursue its broader ambitions in energy, technology, and financial services.

Is DJT a Sell or Buy?

According to TipRanks’ Technical Analysis tool, Trump Media stock is a Sell on a one-day time frame. This is based on 10 Bearish, six Neutral, and six Bullish signals. Shares of the company have declined 19% year-to-date.

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