this post was submitted on 26 Mar 2024
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News

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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.

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[–] [email protected] 113 points 7 months ago* (last edited 7 months ago) (4 children)

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.

[–] [email protected] 15 points 7 months ago (1 children)

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

[–] [email protected] 1 points 7 months ago

That's an even worse bet!

[–] [email protected] 38 points 7 months ago (2 children)

Are you suggesting there's a lack of truth in Truth Social? Unconscionable! It's even in the name!

[–] [email protected] 2 points 7 months ago

I would go as far as saying that the only truth on that social is in its name

[–] [email protected] 9 points 7 months ago* (last edited 7 months ago) (1 children)

Yes I know it's mind blowing, and probably comes as a shock to most people. 😋

[–] [email protected] 9 points 7 months ago

Very smart people. The best people.

[–] [email protected] 85 points 7 months ago (1 children)

It's absolutely a way for Saudi Arabia & Russia to pay Trump's fines.

[–] [email protected] 29 points 7 months ago

That could be it, I bet something is going on, that is probably in the gray area, that could be outright illegal if done directly.