Liberal YouTubers
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(145,789 posts)I am sorry for these idiots but they were stupid to trust TFG.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
tom_kelly
(963 posts)a little bad for these people. So, I won't bother trying
ShazamIam
(2,577 posts)Edit to remove typo at beginning of post.
TeamProg
(6,328 posts)SWBTATTReg
(22,191 posts)stock, to not overly concentrate in one stock issue, and he did. Especially when you are older and you can't replace the money so easily (like him, I'm older too).
He broke the cardinal rule. Where was his broker at the time? If he had one or if he didn't, he self-invested using eTRADE or some other similar platform.
Overall, he F**Ked up his life totally. He does have the remaining amount of recovered stock that he sold at $26 or there-abouts, but still, he took a big wallop.
I do have to give him credit for stepping up, and admitting his mistake. That had to take a lot out of him. I hope that his family comes back around. All of us sometimes in our lives do make mistakes too. You just have to accept it (the loss), try to recover from it as much as you can, and go on.
AZ8theist
(5,524 posts)You can't fix stupid....