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.
Never has a short selling opportunity been so good…
Short term options are currently valuing almost 400% volatility. Your gonna pay out the ass for put options or for the margin required for a short sale. I wouldn’t go anywhere near this.
As they say… that’s priced in.
This guy trades. Can confirm. Puts are outrageously overpriced. U gotta hate trump a whole lot to buy weekly puts
Didn’t Trump just get found guilty of overinflating the value of his properties? Why is this any different?
Because it’s a method of laundering money from foreign powers
Lol, just foreign?
Do you really need the explanation why filling out a valuation form at a bank for a loan and watching an item go nuts at auction is different?
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.
I for one am shocked. Shocked.
They can exit once he has enough out.
It may be better than risking the loss.
…And people say he’s a dummy after nearly 30 years that would make gotti blush at the brazenness.
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.
Ah yes, thank GOD for the failsafe financial regulations in this country! There are LAWS!
Like, wow.
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.
Not to mention if the foreign investors are using this to curry favour with the potential next POTUS, the ‘investment’ isn’t in the $DJT stock, it’s in what trump will do for them if elected. They won’t sue unless he loses.
The whole situation is so fraudulent that you can’t even short it.
Puts seem overpriced
Let the laundry begin!
smh, it’s going to flop like his hotels.
That’s the plan. He just needs to cash out first.
The logic is it’s a megaphone plugged directly into the earholes of a shitload of very dumb, very angry people with plenty of disposable income. They might not give their money directly to Truth Social but Truth Social can give them lots of great ideas for who to give their money to.
with plenty of disposable income.
I would even wager a lot of those people don’t have the disposable income but they dispose it anyway.
True, yeah I guess the money they should be paying in child support or just feeding their kids isn’t technically ‘disposable’, but if Truth Social can get to it before the kids do… I guess they owned the libs…
Oh absolutely. They buy into his bullshit products because they think it will make them money, but in the end they’re worse off than when they started.
I dunno, I see a lot of 50K+ pickup trucks with Trump stuff all over them.
That’s what they spent all their savings on.
I know more than a few not-rich people with 50k+ pickups
I don’t think you drive a >50K pickup and don’t have some disposable income though.
Servicing the debt on a $50k pickup on an 84 month note at 12.35% is different than owning a $50k pickup outright.
Fair
The best and most expensive megaphone. It’s so great. You can write all these beautiful letters on it and you know folks, I can see those letters. Millions and millions of letters, in fact we have the best letters in the entire alphabet, it’s true. Nobody on the internet has such a beautiful letters as I have. I practically invented them. And you can own some of those letters by buying the best stock on the market. It comes with a special orange colored email when you buy them. Just that email will be worth a gazillion because of contains my letters.
Make the internet GREAT AGAIN, folks !!!
short them into the ground!
Pretty much all of these tech valuations are made up bullshit.
But is this one of the most made up bullshittiest? Only time will tell.
I thought the article was saying that it already has told, in that yes it is?:-P
“This is the usual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter
FTFY
Yeah, that goes with the Tesla stock among others.
a popularity contest that a huge percentage of us are forced to have our retirement accounts through. awesome.
the stock market is a scam in which we are forced to participate
Your retirement plan doesn’t have bond and money market options?
Mine is locked into the stock market by way of a former employer and worker’s comp (I’m Canadian).
I can’t move them to GIC’s or any other form of investment. :(
Two words. Money. Laundering.
Hey Bro have you heard about Crypto!?
Same target audience for this stock …
Sounds pretty logical to me.
Look around, its not that unusual to be untethered from fundamentals.
GME , AMC , NVDA , SMCI , TSLA , RDDT ,
You only listed meme stocks lol
Is truth social NOT a meme stock?
This is a roundabout way to billionaires to donate to Trump without him having to necessarily disclose everything.
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.
That’s it in a nutshell. The rich want him because he’s malleable and will obey their every command.
Stannis was iron, he’d break before he bent, but Donald? Donald was the true gold.
When Trump decides the best way to handle a border crisis is to charge down the “wildlings” on horseback, he’s going to get his ass shot.
And will continue to cut taxes for them.
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?!”
eh. Reagan never invaded Iraq.
No, but he deregulated Wall St which is the subject of this thread.
You know it’s strange, I’d almost be tempted to say Trump has been the best republican president since I’ve been alive. Certainly less catastrophic effects on foreign nations. (Note, I’m not American, and this is talking about actual track record, not his annoying fucking voice)
He did however, set the precedent that workers in some jobs simply wouldn’t be allowed to strike because they’re “too important”, when he forcibly broke an air traffic controller strike.
Unions and by extension workers, started to erode pretty quickly after that, in such a short time that they became relatively unheard of until recently.
He also un-funded state run mental hospitals. What to do with all those folks who mentally struggled to function in society? “Dunno! If they can’t make money. Put em’ on the street I guess!” was the Reagan solution. The following step is to “Endlessly ostracize and complain about the unhoused.”
He pushed the idea of the “wellfare queen”, a charicatured, often minority, character, who had a bunch of kids and used government money to do drugs all day instead of work. This nonsense was used quite effectively to discourage and shame the use of social safety nets, as his administration dismantled them altogether.
There’s innumerable social ills and societal failings that can be traced back to some policy Reagan and his ilk pushed. Very similar to Thatcher across the pond. He’s largely to thank for corporations having more rights than people, and “Maybe you should just individually work harder” being the answer to everyone who is constantly whipped about by “market forces.”
Thanks to people like him and Thatcher, people STILL believe that corporations making unlimited riches will somehow lead to higher wages and more days off, instead of going to a hoard in some offshore account, driving wages down, and normalizing mass-layoffs.
That guy labored endlessly to destroy the so-called “American dream.” But hey, he didn’t invade Iraq!
Could it be powered by massive fraud? Experts say things like “slammed,” “mystified,” and “dazzled!”
The sheer level of cynicism is unhinged.
Follow the money. I guarantee this is Russian financing being done at a remove.
I am shocked hearing people say that out loud even. Isn’t that extremely, painfully, provably obvious to everyone? No. It is not. It is a matter of “both sides” debate, apparently.
“Hi, I sell snake oil. It cures cancer!”
“Oooh, I LOVE not having cancer! I’ll buy 1. No, wait, 1000!”guarantee this is Russian financing
Fair more likely it’s Saudi or Israeli money, given how Russians have been cut off from the SWIFT banking system through sanctions.
Don’t forget about the Saudis.
The CCP is also very interested in all this
It’s standard Beijing policy not to intercede when Americans are shooting themselves in the feet
pedos are as well
not sure they are quite so well organised
I wish this were the case.
It’s crazy scary how coordinated that community gets to get their fix, which is why one takedown often leads to more.
It’s crazy how far any community goes to get “its” fix.
Neurologically speaking, our brains’ reward-punishment module is too damn directly exploitable.
I have some bad news for your peace of mind…
I dunno. Epstein et al. seemed fairly well organized.
organised enough to run a pump and dump on stock?
The Saudis, the Israelis, and the Chinesis all have old “trade” agreements with the US.
One other country has joined the club, only they snuck in the back door to burn the whole thing down.
None of the others’ intent is to overthrow US democracy, because they depend on it for not living like Tuskan Raiders in a post-apocalyptic wasteland.
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.
Every dollar you launder still has a risk of being caught, like I said, they have more pressing things to spend foreign currency on.
What? Their money has literally impeded us continuing to give aid to Ukraine. Their investments are paying insane dividends.
Their money has literally impeded us continuing to give aid to Ukraine.
Is there solid evidence of that?
Why don’t you read the fucking news, Sherlock.
More pressing than possibly owning the next American president? No, they don’t.
His bond was reduced, he doesn’t need the money that desperately that they’d own him
Since there isn’t enough info out there for either of us to be wholly right, I will have to agree to disagree.
Cheers mate.
True fair enough
They can still trade in rubles with other countries that are willing to trade with them. It’s not inconceivable that they can ‘launder’ a trade via, say India:
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Russia buys a few billion-ruble toothbrushes from India
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India invests the equivalent in USD with $DJT (minus a cut)
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India uses those rubles to trade at market value for goods with other countries that also trade in rubles
Replace India and Saudi Arabia with any 2 countries on this list: https://www.tbsnews.net/economy/bangladesh-among-over-30-countries-approved-trade-rouble-russian-embassy-705798
Cluing in many people into conspiracies like that would require makes them much harder to keep secret
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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.
