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.
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.
It’s absolutely a way for Saudi Arabia & Russia to pay Trump’s fines.
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.
Are you suggesting there’s a lack of truth in Truth Social? Unconscionable! It’s even in the name!
Yes I know it’s mind blowing, and probably comes as a shock to most people. 😋
Very smart people. The best people.
I would go as far as saying that the only truth on that social is in its name
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
That’s an even worse bet!
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