Shares of Trump Media & Technology Group (NASDAQ:DJT) surged on December 18 after announcing a $6 billion all-stock merger with fusion energy company TAE Technologies. But retail investors aren’t buying the hype. Reddit sentiment collapsed from 78 to just 22 out of 100 immediately following the announcement, with the main discussion thread on r/stocks drawing 972 upvotes and 164 skeptical comments.
The disconnect is striking. While the stock posted strong single-day performance, retail traders are treating the news with deep cynicism rather than celebration.
Reddit Calls It an “Old School Penny Stock”
The tone on Reddit tells the real story. User cheddarben, whose post received overwhelming support from the community, captured the prevailing sentiment:
Trump Media announces $6 billion merger with fusion company TAE Technologies; DJT stock soars 25%
by u/cheddarben in stocks
In the post, cheddarben wrote: “Old school penny stock with bizarro news. I am sure it will be a wild ride.” The characterization of Trump Media as operating like a penny stock resonated widely with commenters expressing similar skepticism.
Top-voted comments echoed this skepticism. Reddit user Unlucky-Clock5230 commented: “This is the most obvious pump and dump I’ve ever seen. The fundamentals are absolutely terrible.” Reddit user techgeek72 added: “TAE has been ‘five years away’ from fusion for the last 27 years. This merger is a joke.” Reddit user InvestmentGrift questioned: “How is a social media company with declining revenue suddenly worth billions by merging with a fusion company that’s never produced commercial energy?”
Retail investors have legitimate concerns:
- Trump Media trades at a staggering 797x price-to-sales ratio with just $3.68 million in trailing revenue
- The company posted negative EBITDA of $175.8 million and a net loss of $54.8 million last quarter
- Revenue declined 3.8% year-over-year, moving in the wrong direction
Technical indicators support the skepticism, with the stock showing high volatility and overbought conditions following the announcement.
Truth Social Meets Fusion Energy
Despite recent gains, Trump Media remains down significantly year-to-date. The stock hit a 52-week low of $10.18 just days ago and trades well below its $43.46 peak. TAE Technologies, founded in 1998, has raised $1.3 billion pursuing commercial fusion energy but has yet to demonstrate a working power plant. The merged company plans to break ground on a 50-megawatt facility in 2026, with co-CEOs Devin Nunes and Michl Binderbauer leading the venture. For investors watching peers, the broader market offers a stark contrast. The S&P 500 is up 15% year-to-date, highlighting the challenging performance of Trump Media stock.
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