Everybody was sooooo upset the other day when we posted a piece here on how Donald Trump had become richer by $6B. Sackcloth and ashes, wailing and gnashing of teeth. People self-flagellating with their laptops. That was Tuesday. Today’s he’s poorer by $600M, Monday that could double. The stock is seesawing. Unstable, meme, bullshit stocks do that.
Goin down down down pic.twitter.com/5pgVFLIS4O
— EileenC ☘️ 🦬 💙 (@EileenConly) March 28, 2024
The market closes for the week due to tomorrow being Good Friday and Sunday being Easter. So who knows what we’ll see? Barrons:
The company’s price-to-sales valuation far outstrips even the buzziest of its social-media peers such as Reddit RDDT-14.60% and Facebook META-1.68% and Instagram parent Meta Platforms. So far, no Wall Street analysts have put a rating or target price on Trump Media stock, according to FactSet.
If Trump Media is to go any way toward justifying its valuation on financial grounds—beyond the meme-stock style appeal of betting on Trump’s fame—then it will likely to need to go some way toward displacing Elon Musk’s microblogging platform X, which claims 550 million people visit the site monthly.
Truth Social’s format is very similar to that of X, and the two companies are now fighting for the same conservative audience. One of Musk’s first actions on acquiring Twitter was to reinstate Trump’s account and during his period of ownership, Republican senators have sharply increased their audience on X while Democrat senators have lost followers, according to an analysis by The Economist. The highest profile content creator on X is arguably Tucker Carlson, who launched his show on the platform after splitting with Fox News.
While Musk hasn’t directly commented on the public listing of Trump Media, he did say overnight on Wednesday that X accounts with more than 2,500 verified subscriber followers would get premium-tier features free, as he seeks to build its base of content creators who can attract more users.
Musk has run Twitter into the ground and Truth Social never really got off the ground. Do not assume that this massive influx of wealth to Trump is real. First of all, he can’t touch the profits for six months without cratering the stock for sure and the way this thing is seesawing, anything goes.
Remember, this is all smoke and mirrors time. Truth Social was a shell company buying a shell company. What numbers you see on paper and what numbers exist in cold hard cash are two very different things. CNN says the stock market valuation is untethered to reality, just like Trump himself.
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.
Ritter said the closest parallel would be GameStop, AMC and other so-called meme stocks that skyrocketed during Covid-19 as an army of retail traders piled in. He said Trump Media is likely worth somewhere around $2 a share — nowhere near its closing stock price of $58.
Two dollars a share. Quite different from fifty-eight.
“The underlying business doesn’t seem to be worth much. There is no evidence this is going to become a large, highly profitable company,” he said. “I’m reasonably confident the stock price will eventually drop to $2 a share and could even go below that if the company blows through the money it got from the merger.”
This is going to go into the toilet like all things Trumpian. Be patient. Have a nice Easter and let’s see how this meme stock is doing on Monday — which is April Fool’s Day, by the way.
Thanks for this Ursula. I saw the previous article’s headline about Trump gaining billions and refused to read it for fear of my poor vulnerable head exploding, so I’m most pleased to be back on safer ground now, back to reading about bad news for the orange lardass.
Nobody was reading that article and it infuriated me because it had a lot of good information in it about how all this works.
This is all part of the ongoing Trump saga. It’s going to be screwed up.
April Fools Day.
He has his own day already.
he has the other 364 to act a fool. please let us have one day of enjoyment 😀
Here’s the thing about the stock market-there has to be belief that a stock has value. Yes, you can sucker people into that belief-capitalism has been doing that for decades-but once the suckers realize there is nothing really there, they bail. Stock, much like currency, has to have something that convinces people it is actually real: if people don’t feel valuations are accurate they will not buy or hold on to stock. Investors must think the company will bring in revenue, spend wisely, make a profit that will in turn raise the stock price thereby making their investment more valuable. trump can only keep such an illusion alive for so long before shit starts falling apart and a company that has never made a profit, has never had a product that people want, will not maintain a steady stock price let alone one that will increase in value.
What is happening is to be expected. I would be surprised if there are any folks who work for investment firms that have any interest in this dog of a stock. It will most definitely not be in any mutual funds. The people who know what they are doing in the investment community know enough to stay away from this garbage.
Bottom line: Go look at Truth Social. And then tell me how it compares to Facebook, Twitter, etc.
I’d love to Ursula – but I won’t sign up for Lies Anti-Social (they want my telephone number and there no way in this wide world that I’d give that to any group run by Don the Con . Plus ‘X’ has banned me (no reason given and they won’t respond to any inquiry as to WHY I was banned)’.
I must have annoyed one of this guy’s devotees
it doesn’t seem to be true for cryptocurrency. No intrinsic value at all, not backed by goods or tax revenues or anything that a normal currency represents. yet people keep bidding it up!
Damn! There went another bottle of Heintz.
It would give enormous evil glee to see Trump in a wornout suit with a sign readung,”Buddy can you spare a billion?”