The stock market is a magical world unto itself. Fortunes have been made and lost. We’ve seen the stock market soar, as it is doing right now today, and we’ve seen the other side of the story, where captains of industry leapt from the towers of finance back in 1929, when it all came to a bust one Black Tuesday in October. Today, Nasdaq and S&P are breaking yet another record and so is Trump Media & Technology Group. Guess which one’s up and which one is down?
Fox: These markets are just running at an incredible pace. Records for the S&P and the Nasdaq. That's the sixth-straight all-time record for the Nasdaq pic.twitter.com/pbiJTRTwz3
— Biden-Harris HQ (@BidenHQ) June 17, 2024
It’s a great climate for the stock market, that much is sure. But not all stocks are going gangbusters. Devin Nunes better make a go out of his winery because God knows he’s not going to be a the helm of Truth Social for all that much longer.
Trump’s stock debuted in March and as pointed out in this block of tweets, if you bought $10,000 then, that stock would be worth $5,000 now. So is it safe to say that in 90 more days the stock will be worth zero? Your guess is as good as that of the experts. It’s a new one on them.
“If I woke up tomorrow and shares were zero dollars, or $100, I would not be surprised,” said Matthew Tuttle, a professional investor who bought $800 in Trump Media stock last week when it was at an all-time low. A day later, it had spiked in value.
“This is not going to move on fundamentals, earnings, or anything I was taught in business school about how a stock is supposed to move,” he said.
With Trump facing dozens of federal felony charges and hundreds of millions in legal expenses, Trump Media went public on March 26 on the Nasdaq exchange. Unlike many other stocks, it has been hard for traditional analysts and investors to figure out where it’s heading.
Let’s see what the stock is doing on June 26, which is the 90-day anniversary of the stock and also the day before the first debate between Donald Trump and Joe Biden. So far the overall picture is that the stock is mercurial, rickety, unstable and turning out to be worthless — much like the man that it’s named after.
Here are some key takeaways from experts and regulator filings that help explain why Trump Media’s stock — ticker symbol DJT — has gone up and down, and why its performance continues to confound Wall Street expectations:
The stock’s volatility, experts say, is tied to Trump Media’s prime asset: Trump himself. Trump Media runs the social media platform Truth Social, which Trump created after he was banned from Twitter and Facebook following the Jan. 6, 2021, Capitol riot. The former Republican president, who is his party’s presumptive nominee for the White House this year, is a prolific poster to Truth Social and has a legion of diehard supporters.
“I LOVE TRUTH SOCIAL, I LOVE THE TRUTH!” Trump posted the day his company went public.
Most large investors have balked at buying the company’s stock. Based in Sarasota, Florida, Trump Media has been losing loads of money and struggling to raise revenue, according to regulatory filings. That doesn’t appear to have dissuaded Trump’s supporters from embracing a chance to invest in a piece of him.
“It’s everything out of the ordinary,” said Julian Klymochko, CEO of Calgary-based Accelerate Financial Technologies Inc.
“I call it the mother of all meme stocks,” he said, using a phrase oft-repeated about Trump Media. It’s the nickname given to stocks that get caught up in buzz online and shoot way beyond what traditional analysis says they’re worth.
Back in March Trump’s net worth took a fantastical climb upwards. He was decreed worth $6 billion. That didn’t last long. The death knell was basically sounded a month ago when the accountants at Truth Social proclaimed that it was having problems “as a going concern” meaning being able to pay its bills and stay in business. Today’s showing on the stock market only underscores that edict.
It would be fascinating if Truth Social goes out of business right before the election, say in September. That would force Trump to play on Elon Musk’s platform. That would be quite the come down.
It could happen. There is no indicator that Truth Social is a healthy business. It’s not a question of if it will go under, only when. The closer to the election the better. Right now I’ll bet Devin is biting his fingernails worrying how he’s going to keep the lights on until November 5, and if he doesn’t do that, how it will look. Quite the dilemma.
Prediction time: maybe the top 100 donors in this cycle each pitch in $10 million + to prop up price. Not bribery. Wink wink. And hey maybe they get some foreign “sales/investments” and “launder” that $$. Again. Not bribery or foreign $ for election. A win-win for … oligarchs and dictators👍🙄
HERE piece written at 36.52…. it closed today at 26.64