DJT’s second quarter earnings report was a disaster. Management once again decided to skip a quarterly earnings call that would have featured in-person management comments and a critically important question-and-answer session with analysts that everyone, especially nervous shareholders, could have heard.

As a result, management relied solely on the weak SEC 10-Q (second quarter earnings report). However, this failed to generate the necessary support and interest from shareholders and potential investors. Naturally, the media could only report the bare, negative picture:

Barron’s: “Trump Media reports a loss of $16.4 million. The stock fluctuates.”

Investors Business Daily: “Donald Trump’s Trump Media reports low revenues and rising operating losses”

The result? The significant weakness in Trump Media shares seems appropriate, and there is likely to be more to come.

Why would anyone want to buy or hold DJT now?

Psychologically, there is only “Donald Trump” and the goal of “free speech without interference from big tech companies.” However, if the company’s low revenues are now declining after more than two years in business, there is no fundamental evidence that Trump Media will succeed.

The fundamental metrics that are crucial to any stock market analysis remain extremely poor. A company with little fundamental support, large earnings losses and no evidence of growth is ripe for failure.

This weakness has not gone unnoticed on Wall Street. Short interest rose over 50% in July, from 5.2 million shares to 8.3 million shares. (Yes, this short interest is “legal,” according to Nasdaq.)

In addition… the technical picture continues to deteriorate

All the charts examined in my previous articles have gotten worse. There are no technical positives other than the reduced “hope” that the recent low will be the final low. This chart shows the picture so far…

Conclusion: Plan to adjust to reality

It’s time. The Trump brand remains, but the stock price is being hit by serious fundamental, technical and emotional forces. As such, DJT will likely remain weak until it hits the potential sell-off wave in September when the many “locked-in” shareholders can finally sell.