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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsTrump's Media Company Surges in First Day of Trading
Trumps Media Company Surges in First Day of Trading
March 26, 2024 at 9:59 am EDT By Taegan Goddard 389 Comments
https://politicalwire.com/2024/03/26/trumps-social-media-company-surges-in-first-day-of-trading/
"SNIP..........
Theres a new high-flying stock on Wall Street that some investors are eagerly piling into. Its largest shareholder is former President Donald J. Trump, the New York Times reports.
His social media company, Trump Media & Technology Group, began trading on the Nasdaq on Tuesday, under the ticker DJT, and immediately surged in value, gaining 40% in early trading.
Wall Street Journal: Its shares soared after the opening bell, giving it a market value of roughly $9.5 billion. The gobsmacking stock price makes Trumps approximately 60% stake worth approximately $5.5 billion. Those values will continue swinging with the stock price.
.........SNIP"
Applegrove:
A great transfer of wealth to Trump while he is running and under election finance laws. Trump can sell his shares in 6 months, so October.
Joinfortmill
(14,492 posts)kysrsoze
(6,025 posts)This is a classic pump and dump scheme. One people figure out this stuff isnt making money and wont in the future, the stock price will plummet.
Qutzupalotl
(14,340 posts)Trump loses in November.
DavidDvorkin
(19,504 posts)You can follow it here:
https://www.google.com/search?q=djt+nasdaq
bluesbassman
(19,385 posts)but how is a company valued at $9.5 billion when it had revenue for 2023 in the low seven figures and losses close to $50 million? It's not even ground breaking tech or from what I've scene even a very good platform. This is the epitome of a smoke and mirrors scam.
applegrove
(118,880 posts)WarGamer
(12,494 posts)I can show you companies with 40B in assets worth 2T and companies losing millions each quarter worth 500B.
"Value Investments" are soooo 20th Century.
bluesbassman
(19,385 posts)Truth Social has been a dog and disaster from the git-go. I know MAGA cult members are gullible and stupid, but this is just insane.
Torchlight
(3,400 posts)Trump's stench on this will make Enron look like an American success story.
bluesbassman
(19,385 posts)It's my retirement nest rock!
SWBTATTReg
(22,191 posts)are far ahead of what the going stock price is now (as compared to current earnings, e.g., price/earnings ratio).
applegrove
(118,880 posts)there are people shorting the shorters.
SWBTATTReg
(22,191 posts)lame54
(35,343 posts)moondust
(20,019 posts)Laundry Day?
LetMyPeopleVote
(145,794 posts)Meme stocks rely on the greater fool theory. I was amused to see that DWAC/Trump Media is classified as a meme stock where the value is due to personality and not due to the real value of issuer of the meme stock. This article is a good discussion of the meme nature of DWAC/TMT.
https://www.vanityfair.com/news/donald-trump-truth-social-media-merger
Truth Social is a bad imitation of Twitter, where Trump was an unavoidable presence long before he ran for president. Its chock full of stale red-pilled memes, MAGA conspiracy theories, and of course, Trump. Thats the main draw. Truth Social is the only place the former president now regularly posts his unfettered thoughts......
DWAC is best thought of as a meme stock. You may remember the meme stock fad from when retail investors on Reddit successfully coordinated a short squeeze with GameStop stock, before glomming onto a series of other millennial nostalgia brands like AMC Entertainment, BlackBerry, and Bed Bath & Beyond. Meme stocks are often publicly traded companies that attract an inordinate percentage of individual investors and their stock performance fluctuates in a way thats significantly divorced from the reality of their underlying business. Combine those two trends and youll start to see why Trumps media company could be valued at roughly $9 billion if it merges with DWAC.
Jay Ritter, a finance professor at the University of Florida, says meme stocks often depend on the greater fool theory of investing, meaning rational investors might buy in expecting the stock price to rise and betting that they can sell their shares to a greater fool willing to buy them at a higher price. In this case, however, Ritter speculates there is an inordinate number of individual retail investors compared to institutional investors, such as hedge funds, that normally own SPAC shares prior to a merger. Here youve got ideology involved [too]as far as I can tell, the vast majority of DWAC investors are Trump political investors, and theyre to some degree putting their money where their mouth is My suspicion is most of them have bought the stock as a show of political support. In this way, Trump is conducting yet another public fundraising from his supportersthis time through the public markets.
Idiots who purchase meme stocks are betting that they can get out before the other idiots figure out that the stock is worthless