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.
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.
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
That’s what they spent all their savings on.