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.
This is a roundabout way for billionaires to donate to Trump without him having to necessarily disclose everything.
That’s it in a nutshell. The rich want him because he’s malleable and will obey their every command.
that is the basis of his presidency and any Republican candidate ever
Yup. Up until orange man, Reagan had been the worst.
“Ronald Reagan? The actor?!”
No, it’s not.
To do that they could’ve just paid him $x to “advertise” on truth social.
Buying shares this way nets him nothing. He can’t do anything with these shares, by the time he can they will be worthless.
He can’t do anything with these shares, by the time he can they will be worthless.
Didn’t Musk teach you anything? You never sell the shares you borrow against them.
I cannot comprehend how a company can lose 45 million dollars in 9 months by running what is essentially a glorified Mastodon instance.
Nothing about Truth Social makes any sense.
Originally it was just a modified Mastodon instance with federation removed. They hired Alex Gleason who maintains a fork of Pleroma called “Soapbox” to make significant changes to the front and back ends of the site.
Gleason also runs a handful of federated Soapbox instances, all of which are dedicated to far-right “free speech” content, mostly Nazism (Poast) and Trans-hate (Spinster). He also helps admin many other instances dedicated to hate speech.
Gleason has indicated that Truth Social and Poast run on basically the same codebase.
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
To be fair, the code is not the content.
He was their technical director and the site is absolutely covered with Nazis. Find me a Soapbox instance that isn’t.
One of the key features of Soapbox (outside of Truth Social) is that you can still see and boost content from other instances that have blocked yours. Gleason even created workarounds to defeat authorized fetch.
This is so that they can engage in Kiwifarms-style harassment.
I would absolutely say that the malice is written into the code itself.
Being untethered to reality is literally in the core of stock trading. It’s nonsense, modern day magick for the least cool people.
This is literally just a loophole to allow foreign governments to give Trump boatloads of cash. Instead of giving him explicit gifts, you prop up the price of his worthless company’s shares
Trump can’t cash out shares for 6 months. So now they have to keep the price inflated for 6 months.
Could be some folks find value in social media for a group preselected for gullibility.
Trump can’t cash out shares for 6 months. So now they have to keep the price inflated for 6 months.
Unless they’re just unloading their shares onto Rubes. In which case, they only need other people to buy-and-hold at the inflated rate.
This is not aimed at you or anyone particular just my thoughts, but it’s amazing how uneducated people are when it comes to finance. I know I am, and every day I learn a little more of how gullible I’ve been. I did live on the streets selling drugs though, and once you see how that game is played, you see how every fucking game is played. You do this and he does that and they do this and that for you and we all come out on top, right? Throw a couple of million dollar lawyers, accountants, legal experts, think tanks, connections to the monetary and industrial elite of the world, and stack the SEC with 92% former and future employees of yours, and suddenly the game makes sense without any need to get the academics.
It’s not about the math, it’s about who you know.
If anyone is skeptical then remember exactly what Clump was convicted of and what his punishment was.
Now he’s crowdfunding that punishment away, and people think that somehow it’s impossible that it’s a scam because of financial regulations? Bruhs…
Except he can sell sooner, if certain steps are taken. Or so it has been widely reported.
Trump hit with huge fine he can’t pay -> Rumors of Trump trying to raise money from foreign governments -> Lawyers push back, say ‘you can’t just accept half a billion from foreigners to pay the fine, there are rules!’ -> Truth Social IPO raises a bunch of money that (foreign) investors are willing to ‘loose’ when the stock inevitably collapses -> Trump puts up the stock as collateral to pay the bond to pay the fine.
What? He can’t sell his stock for 6 months? No, he isn’t selling it, he is putting it up for collateral, totally legal, totally won’t be investigated by the SEC until he gets elected and fires the head of the SEC and the lawsuit goes away.
He can’t use the stock as collateral for 6 months either or the other shareholders can sue. This dude is not a financial genius. People smarter than him have tried to game the system. Some win but there are a ton of laws and ways to sue for it.
or the other shareholders can sue.
Being on the wrong side of a court proceeding (or several) doesn’t seem to be much of a disincentive to Trump doing whatever he wants.
Money laundering. Just like buying those bibles.
You know… In my life I’ve had to talk a few people out of scams.
I know they were scammed, it’s blatantly a scam, the evidence is overwhelming, my experience is solid, everyone I know of’s experience says the same.
Yet they will argue with you back and forth and never really be satisfied because they want to believe it so much, and I imagine it stings a good bit being told you’re being ripped the fuck off and you’re too stupid or inexperienced to understand that.
I’m never confrontational about it, I just make it very perfectly clear that proceeding would be extremely ill advised, and that even their own worries brought them to me asking for my opinion because they trust my judgment.
It scares me how long it takes to convince them, and how often in the end they come to me a month later and I ask them how it went, and they went and bought it anyway, for whatever far fetched rationalization they managed to construct for themselves.
Psychology is real, psychology is simple, all it takes to control humans is to have no care for anything but yourself.
“Yes, I know it’s scammy, but I’m getting in on the ground floor so I’m not the one who will be holding the bag” is a sentiment I’ve seen (and occasionally held) entirely too often.
NGL I’ve been there myself more than once. That is how I know. Winners never quit, quitters never win, but if you never quit and never win, you’re a moron.
Winners never quit
Knowing when to cut your losses is kinda important if you want to win long term.
Follow the money. I guarantee this is Russian financing being done at a remove.
Don’t forget about the Saudis.
The CCP is also very interested in all this
Russian financing how? They can’t access banks, I doubt they’re wasting precious foreign currency on this.
Just because they’re not allowed to access banks doesn’t mean they can’t.
Lots of people, organizations, and even governments do all sorts of crimes even though they’re really not supposed to. Conceptually speaking, money laundering is a fairly simple crime to do and, like so many crimes, it becomes easier to get away with the more powerful you are.
If you’re creative and determined you can reframe a lot of basic interactions as crimes.
And if you’re gullible it’s easy to reframe them as part of the “nothing is happening in the world and geopolitics are not a thing” conspiracy theory.
Ah shit I forgot what thread I was on and was just “the cops will lock you up for pissing sideways” rambling.
Yeah, us communists are all the same, just repetitive propagandistic slogans and dumb soundbites led by an uncharismatic moron telling us what to do.
Go build a wall, or bridge or whatever.
Edit: Wait, wait, you weren’t being sarcastic? If so my bad.
I doubt they’re wasting precious foreign currency on this.
Their EXISTENCE hinges on winning the US election right now.
It’s literally ALL they are “wasting precious currency” on.
Their EXISTENCE hinges on winning the US election right now.
What does this mean?
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.
a price tag that experts warn is untethered to reality.
Is there any company whose stock price is tethered to reality? In any case, sounds like a surefire win to short that shit
As tempting as that might be in the real world, in the financial world - this would be an expensive move, the most expensive short there is right now. Nearly all the available DJT stock was sold short but that has cost those people millions already.
Trump Media Is Now the Most Expensive US Stock to Bet Against. His theatrics are literally all that is driving the stock up because, on paper, it should be an obvious losing hand.
What’s the opposite of shorting and can you do that to a short?
The opposite of shorting a stock is buying a stock.
I’m not sure about that. I thought shorting was a promise to buy the stock for someone in the future, in return for the price now. That way if it goes down you make a profit. The real opposition of buying is not buying. Or maybe buying the compeditor.
The opposite of buying is selling. When you buy, the price goes up and when you sell it goes down.
Normally you buy a stock before selling it. The opposite is selling a stock before buying it, which is known as shorting the stock.
smh, it’s going to flop like his hotels.
That’s the plan. He just needs to cash out first.
Never has a short selling opportunity been so good…
