Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”
The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.
Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.
The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.
“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.
This is a roundabout way for billionaires to donate to Trump without him having to necessarily disclose everything.
That’s it in a nutshell. The rich want him because he’s malleable and will obey their every command.
Stannis was iron, he’d break before he bent, but Donald? Donald was the true gold.
When Trump decides the best way to handle a border crisis is to charge down the “wildlings” on horseback, he’s going to get his ass shot.
No, it’s not.
To do that they could’ve just paid him $x to “advertise” on truth social.
Buying shares this way nets him nothing. He can’t do anything with these shares, by the time he can they will be worthless.
He can’t do anything with these shares, by the time he can they will be worthless.
Didn’t Musk teach you anything? You never sell the shares you borrow against them.
Trump hit with huge fine he can’t pay -> Rumors of Trump trying to raise money from foreign governments -> Lawyers push back, say ‘you can’t just accept half a billion from foreigners to pay the fine, there are rules!’ -> Truth Social IPO raises a bunch of money that (foreign) investors are willing to ‘loose’ when the stock inevitably collapses -> Trump puts up the stock as collateral to pay the bond to pay the fine.
What? He can’t sell his stock for 6 months? No, he isn’t selling it, he is putting it up for collateral, totally legal, totally won’t be investigated by the SEC until he gets elected and fires the head of the SEC and the lawsuit goes away.
He can’t use the stock as collateral for 6 months either or the other shareholders can sue. This dude is not a financial genius. People smarter than him have tried to game the system. Some win but there are a ton of laws and ways to sue for it.
or the other shareholders can sue.
Being on the wrong side of a court proceeding (or several) doesn’t seem to be much of a disincentive to Trump doing whatever he wants.
Not to mention if the foreign investors are using this to curry favour with the potential next POTUS, the ‘investment’ isn’t in the $DJT stock, it’s in what trump will do for them if elected. They won’t sue unless he loses.
They can exit once he has enough out.
It may be better than risking the loss.
“I’ll settle my debts when I get to the White House.”
Solid gamble for investors, honestly. Like, extremely good. If I was a subhuman parasitic dickworm or something, I’d put at least half my chips on red.
And seriously, look what we’re doing. While we are talking about how he is going to repay his debts for [insert crooked fucking shit and prostitutes pissing on Trumps face here], we are not talking about how the FUCK a guy with his record is even allowed to run for president.
Just moving the goalposts, one investor at a time. Everyone knows this hog will get slaughtered sooner or later, and they are sucking its tiny teats for as much daddy milk they can before it dries up.
Then it’s MTG’s turn to be led to the top of the Aztec pyramid and control the world for a few years before she goes soccer mom tits up.
…And people say he’s a dummy after nearly 30 years that would make gotti blush at the brazenness.
Revenue of $ 3.4 million should put it around a $ 34 million value, provided it had normal profit. But it operates at a deficit, and AFAIK a not impressive growth rate. So a more normal estimate would probably put the company about $ 20-25 million.
The talk about billions is ridiculous to a degree where it’s either insane, or some sort of scheme exist to pump it to hundreds of times the actual value.
Are you suggesting there’s a lack of truth in Truth Social? Unconscionable! It’s even in the name!
Yes I know it’s mind blowing, and probably comes as a shock to most people. 😋
We saw this same thing with tesla a few years back before they did their split. People are investing in the man, not the company. It’s strange
I cannot comprehend how a company can lose 45 million dollars in 9 months by running what is essentially a glorified Mastodon instance.
Nothing about Truth Social makes any sense.
Originally it was just a modified Mastodon instance with federation removed. They hired Alex Gleason who maintains a fork of Pleroma called “Soapbox” to make significant changes to the front and back ends of the site.
Gleason also runs a handful of federated Soapbox instances, all of which are dedicated to far-right “free speech” content, mostly Nazism (Poast) and Trans-hate (Spinster). He also helps admin many other instances dedicated to hate speech.
Gleason has indicated that Truth Social and Poast run on basically the same codebase.
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
To be fair, the code is not the content.
He was their technical director and the site is absolutely covered with Nazis. Find me a Soapbox instance that isn’t.
One of the key features of Soapbox (outside of Truth Social) is that you can still see and boost content from other instances that have blocked yours. Gleason even created workarounds to defeat authorized fetch.
This is so that they can engage in Kiwifarms-style harassment.
I would absolutely say that the malice is written into the code itself.
The logic is it’s a megaphone plugged directly into the earholes of a shitload of very dumb, very angry people with plenty of disposable income. They might not give their money directly to Truth Social but Truth Social can give them lots of great ideas for who to give their money to.
with plenty of disposable income.
I would even wager a lot of those people don’t have the disposable income but dispose it anyway.
I dunno, I see a lot of 50K+ pickup trucks with Trump stuff all over them.
Servicing the debt on a $50k pickup on an 84 month note at 12.35% is different than owning a $50k pickup outright.
The best and most expensive megaphone. It’s so great. You can write all these beautiful letters on it and you know folks, I can see those letters. Millions and millions of letters, in fact we have the best letters in the entire alphabet, it’s true. Nobody on the internet has such a beautiful letters as I have. I practically invented them. And you can own some of those letters by buying the best stock on the market. It comes with a special orange colored email when you buy them. Just that email will be worth a gazillion because of contains my letters.
Make the internet GREAT AGAIN, folks !!!
I mean I was looking at it this afternoon market cap of 2.7 billion for a bunch of dumb angry people, who are listening to their obesed, dementing orange wannabe Jesus. It shows as someone else mentioned in this thread, (some) tech companies are just inflated air castles. If Trumps platform 2.7b worth the the real Jesus Must be a multi trillionaire
