Trump's Unbearable Temptation to Dump His Truth Social Stock

[aggiesal]

This discussion thread was locked as off-topic by Lasher (a host of the Latest Breaking News forum).

Source: The New Republic via Yahoo.com/news

U.S. Steel is no longer the colossus it was in 1958, when that scene takes place. But it still caught my attention when The Wall Street Journal reported Tuesday that the valuation of Donald Trump’s Truth Social was almost as big as U.S. Steel’s. This was the very first day of trading for the app’s parent company, Trump Media & Technology Group (ticker symbol: DJT), when the stock price rose 56 percent to $78 per share; it closed Wednesday just south of $70. That’s a remarkably strong performance for a money-losing social media platform.

How worthless an investment is Truth Social? Looking at what killjoys call “the fundamentals,” the platform’s monthly active users fell 51 percent in February compared to the previous year, down to a very modest 494,000.

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Read more: https://www.yahoo.com/news/trump-unbearable-temptation-dump-truth-100000153.html

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Someone is definitely trying to help Pendejo45, by grifting stock investors.
Not to mention getting some influence over Pendejo45, God forbid, if he gets re-elected.
That's how I see it.

[doc03]

1. I am guessing it was cooked up with Elon Musk nt

[BeyondGeography]

2. Trump and dump

The artificially inflated man and his stock are obviously made for each other.

[former9thward]

3. I don't think this is LBN guidelines.

But that aside there are a lot of money losing social media stocks. That same WSJ article mentioned in the OP also said that Reddit which is a social media platform has a stock valuation of $10 billion, far greater than U.S. Steel and Reddit has been losing money for 20 years. I stay away from all those types of stocks.

[Bernardo de La Paz]

8. RDDT & DJT have about same market cap, same negative EPS but vastly different user base

DJT (Trump Media Group) -- {un}Truth Social has about 420,000 users daily (stat seen on DU). It has about 2 million "active" users (link).

Reddit has about 73 million daily users (link). Reddit usage is increasing. unTruth Social usage is declining.

And yet they have the same market capitalization (about 9.5 billion bucks).

The DJT stock price is unsustainable. I read an interesting analysis that pointed out that there is a "gamma" squeeze that might be propping up the stock. Because of the option positions, call option providers must buy the stock to hedge their positions, leading to an overvalued stock in the short term. Plus the float of the stock (shares that could be sold in immediate future) is mostly shorted which has an effect of propping up the stock price, ironically, at least in the short run.

[former9thward]

10. Is Reddit making a profit?

Has it ever?

[Bernardo de La Paz]

11. Never made a profit, I think. Certainly not now (negative EPS earnings per share statistic). . . . nt

[FakeNoose]

4. The current value of the stock notwithstanding, it has a short life span

Once Chump either croaks or goes to prison, he'll be off the Xwitter-TruthSocial scene for good. Nobody will waste time on his platform and the value of the stock will quickly plummet to $0.

If Chump sells his stock and cashes in - and it's likely that he will need to sell at least some of it - maybe he'll start to lose interest in Truth Social? I don't know. His obsessions don't seem to last long, once he realizes it's not making him any more money.

I really don't care, but it's a sure thing that somebody will lose a lot of dough on this.

[Gore1FL]

5. It's a meme stock with money-laundering potential.

It represents a money-losing company with little or no assets.

It will ultimately crash and burn; hopefully this happens well before he can sell it. In the meantime, it's probably best to stay away from it.

[dchill]

6. All is Grift.

[4lbs]

7. Enron anyone?

https://www.investopedia.com/updates/enron-scandal-summary/


The story of Enron depicts a company that reached dramatic heights only to face a dizzying fall. The fated company’s collapse affected thousands of employees and shook Wall Street to its core. At Enron’s peak, its shares were worth $90.75. Just prior to declaring bankruptcy on Dec. 2, 2001, they were trading at $0.26.

[twodogsbarking]

9. Wait until people start losing their money and file lawsuits.

[SouthernDem4ever]

12. The market isn't a very good indicator of good business models

Look how long it took to catch Bernie Madoff - and that was only because he surrendered.

[jvill]

13. Literally everyone knows this stock is going to crash...

… the participants are just trying to time it right.

Unless Trump wins, and the stock goes up, and we’re officially through the looking glass.

[Lasher]

14. Locking

This is analysis, which is not permitted in the LBN forum. Feel free to repost in GD.