The stock market giveth and the stock market taketh away. On Easter Sunday we were regaled by Donald Trump’s flunkies and minions, all crowing about how “incredibly smart” he is and “what a great businessman.” That was 48 hours ago, today, all you hear is the echo of their glad tidings, because the reality of the Truth Social stock is something else altogether. Plus, “its accountant had issued a warning that its losses ‘raise substantial doubt about its ability to continue as a going concern,'” according to CBS News.

Shares of Trump Media & Technology Group, whose primary asset is the Truth Social platform, tumbled $13.30, or 21%, to $48.66 on Monday. That’s below its opening price last Monday of $49.90 per share, and represents a 39% plunge from the stock’s high of $79.38 on March 26.

The decline continued on Tuesday with the shares losing 2.4% in early trading, before reversing and gaining ground. By mid-morning, the stock was up $2.05, or 4.2% to $50.70. […]

Trump, who owns 57% of the newly public company, has lost $2.5 billion — at least on paper — because of the stock slide. His stake is now worth $3.8 billion, down from $6.3 billion at the stock’s peak last week.

And the $3.8 billion figure is a fantasy, if the accountant is making noises about closing the doors. And yes, it gets worse. It gets comically worse.

To be sure, Trump Media continues to maintain a heady market capitalization for a business that’s in the red and that booked just $4.1 million in revenue last year. Even after Monday’s stock plunge, the business is worth $6.7 billion, making it more valuable than companies like Bausch & Lomb, Alcoa Corp. or Harley-Davidson, all of which have annual revenue in the billions.

Go back and reread that sentence and when your head stops spinning we’ll discuss it. HOW you are screaming inside, HOW can a business with revenue of less than $4 million be worth more than companies with annual revenue in the billions? It is due to the mysterious nature of capitalism. What you are seeing with Truth Social is the most cynical application of capitalism to a low-value meme stock that you are ever likely to see. Truth Social never had any money. It never had any business plan. It never had any real infrastructure, such as the rock bottom basics of advertisers and means to grow the base of users. All it ever had was a way of doing an end run, legally, around the SEC and common sense. So it’s perfect for Trump. That’s how he’s been doing business his entire life.

Trump will approve of this next one. If you just post the market results upside down, all is well.

Again, I suggest we all listen to the Truth Social accountant, that “it’s losses raise substantial doubts about its ability to continue.” All shell games come to an end. Ask Donald Trump. He’s filed for bankruptcy six times and he would happily do so this year, but for the pesky fact that it looks bad for a presidential candidate to do so.

 

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3 COMMENTS

  1. If the Idiot had access to ANY intelligence, his mentality of the Sharpie Marker’s being used for self-promotion, as stupid as it is, would be off the table, but, with a three year old glee, making beautiful, colorful masterpieces on a freshly repainted wall with permanent Sharpie Markers would be OK and quite the same as his performance in the shelter on his Island trip where he threw rolls of paper towels out to the local people as a typical stunt, THEN had the audacity to whip out a black Sharpie marker and place his signature on the wall, REALLY LARGE, by reaching as high and low as he could to make it SO BIG to match his HUGE self-importance mind fault …

    Since he has no anchor in reality, his continued whipping of the Maga Miss-fits, may actually create a more dangerous version of 01-06, about all we can do until his ass IS finally in prison, is like they taught the young students if the bombs started to fall back in those days, fall to the floor and roll under the big oak tables …

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  2. if he doesn’t get his waiver and sell he loses the money. of course he won’t actually lose anything because the shares didn’t cost him anything. and he no longer needs money for his bond. could it be, just maybe, that he understands that selling would tank the stock and cost a lot of his cult members a lot of money and perhaps cost him their loyalty so he has decided he needs them more than the money? I know, I don’t like this post either so go ahead and give it a thumbs down. I’ll start.

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