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.
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.
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.
Ah yes, thank GOD for the failsafe financial regulations in this country! There are LAWS!
Like, wow.