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.
The whole situation is so fraudulent that you can’t even short it.
Puts seem overpriced
This is literally just a loophole to allow foreign governments to give Trump boatloads of cash. Instead of giving him explicit gifts, you prop up the price of his worthless company’s shares
But which governments, though? Which one, there are so many… I can’t think of a single one that would be motivated to influence US politics and do something so blatantly anti-democratic.
Trump can’t cash out shares for 6 months. So now they have to keep the price inflated for 6 months.
Could be some folks find value in social media for a group preselected for gullibility.
Trump can’t cash out shares for 6 months. So now they have to keep the price inflated for 6 months.
Unless they’re just unloading their shares onto Rubes. In which case, they only need other people to buy-and-hold at the inflated rate.
This is not aimed at you or anyone particular just my thoughts, but it’s amazing how uneducated people are when it comes to finance. I know I am, and every day I learn a little more of how gullible I’ve been. I did live on the streets selling drugs though, and once you see how that game is played, you see how every fucking game is played. You do this and he does that and they do this and that for you and we all come out on top, right? Throw a couple of million dollar lawyers, accountants, legal experts, think tanks, connections to the monetary and industrial elite of the world, and stack the SEC with 92% former and future employees of yours, and suddenly the game makes sense without any need to get the academics.
It’s not about the math, it’s about who you know.
If anyone is skeptical then remember exactly what Clump was convicted of and what his punishment was.
Now he’s crowdfunding that punishment away, and people think that somehow it’s impossible that it’s a scam because of financial regulations? Bruhs…
Except he can sell sooner, if certain steps are taken. Or so it has been widely reported.
Let’s invest in the company most tied to the health of a single man. And let that man be high in years and eat McDonald’s like it was going out of style. That won’t ever backfire.
The minute he dies, all users start going elsewhere.
What users? Truth social has zero business plan.
And it won’t be a second too soon
More importantly, it is tied to the mental health of a single man, and that has already gone out of the window long ago.
That’s a feature, not a bug.
GameStop part II?
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
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?
Didn’t Trump just get found guilty of overinflating the value of his properties? Why is this any different?
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?
Because it’s a method of laundering money from foreign powers
Lol, just foreign?
Money laundering. Just like buying those bibles.
You know… In my life I’ve had to talk a few people out of scams.
I know they were scammed, it’s blatantly a scam, the evidence is overwhelming, my experience is solid, everyone I know of’s experience says the same.
Yet they will argue with you back and forth and never really be satisfied because they want to believe it so much, and I imagine it stings a good bit being told you’re being ripped the fuck off and you’re too stupid or inexperienced to understand that.
I’m never confrontational about it, I just make it very perfectly clear that proceeding would be extremely ill advised, and that even their own worries brought them to me asking for my opinion because they trust my judgment.
It scares me how long it takes to convince them, and how often in the end they come to me a month later and I ask them how it went, and they went and bought it anyway, for whatever far fetched rationalization they managed to construct for themselves.
Psychology is real, psychology is simple, all it takes to control humans is to have no care for anything but yourself.
“Yes, I know it’s scammy, but I’m getting in on the ground floor so I’m not the one who will be holding the bag” is a sentiment I’ve seen (and occasionally held) entirely too often.
NGL I’ve been there myself more than once. That is how I know. Winners never quit, quitters never win, but if you never quit and never win, you’re a moron.
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.
They can exit once he has enough out.
It may be better than risking the loss.
I for one am shocked. Shocked.
…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.
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.
Ah yes, thank GOD for the failsafe financial regulations in this country! There are LAWS!
Like, wow.
Two words. Money. Laundering.
Hey Bro have you heard about Crypto!?
Same target audience for this stock …
Sounds pretty logical to me.
WELCOME TO FINANCE! There are no rules, and if we break them, we remake them!
This is a case where I literally both hate the player and the game.
I just have to say, the folks at Reddit must be eating their own hearts out right now.
If only they hadn’t shut down The_Donald, this could have been them.
It’s literally a platform to talk to the most gullible and easily manipulated group of people. You can hate everything about the platform but you have to admit magas fall for everything and are willing to pay for it. These people bought trump bucks…
Ooh, I’m gonna go see how long it takes to be banned.
Ugh it’s so calculated too… Just as Reddit went full retard, the Dumpf stands there welcoming the exodus to his Glorious One Regime As A Service.
What happened to Reddit after the Digg! migration was that Reddit turned into shit. And now reddit passes the concentrated shit onto the next gaping mouth who also happens to be President (because let’s not kid ourselves, that’s how we all know it will play out- we are not fighting the Republicans, we are fighting the Russians and the Republicans). When will the centipede stop feasting on our feces?
These people bought trump bucks…
This isn’t a good representation of them
They bought them AND tried to use them as legal tender
Trump is now a stock.
A meme stock
“defies logic” no it doesn’t it is a wall street con job per usual for those fucking ghouls lol.
I don’t think “con job” is the whole story here. There’s always money to be made when morons gather together and soulless hedge fund managers don’t care about the side effects. What better place could there be to sell advertising space for testosterone supplements and nuclear fallout shelters?
Not to mention all the free advertising for it from both social and mainstream media.
Con job is the name for what you described. It is short hand for confidence game and literally means “A confidence game, also known as a con, scam, grift, or flim flam, is an attempt to win the trust and confidence of a victim, known as the “mark,” in order to defraud them.”
Those soulless hedge fund managers and conning the investors and Trumpers to make money.
There’s always money to be made when morons gather together
Hence Trump selling ugly sneakers and “presidentially endorsed” bibles…
Him selling bibles just astounds me. How did he not just explode into a billion orange particles when he picked it up?
There really is no justice in the world.
Oh god I thought that was a joke.
Edit: hoooooly shit.
https://apnews.com/article/trump-god-bless-usa-bible-greenwood-2713fda3efdfa297d0f024efb1ca3003This surpasses Simpsons levels of dark humor.
“The word of God- approved by and with written foreword in simple English by
MussoliniGurbanguly BerdimuhamedowNicolae CeaușescuDamold G Trumph, only $59.99”
You know how I know God isn’t real? Because that.Jesus be like… “dude”.
My brain starts to ache just trying to figure out how the heck anybody can associate that man with any morally-goaled faith.
Even the most basic background on things he doesn’t even dispute shows he’s the antithesis of everything Jesus even talked about.
I’m surprised anyone who considers themselves and this guy a “Christian” doesn’t just spontaneously combust from the sheer cognitive dissonance required to hold themselves together.
Exactly! What’s not to understand here?
Gotta play stupid so the nobody taxpayers don’t see through the veil again.
I cannot comprehend how a company can lose 45 million dollars in 9 months by running what is essentially a glorified Mastodon instance.
Nothing about Truth Social makes any sense.
Originally it was just a modified Mastodon instance with federation removed. They hired Alex Gleason who maintains a fork of Pleroma called “Soapbox” to make significant changes to the front and back ends of the site.
Gleason also runs a handful of federated Soapbox instances, all of which are dedicated to far-right “free speech” content, mostly Nazism (Poast) and Trans-hate (Spinster). He also helps admin many other instances dedicated to hate speech.
Gleason has indicated that Truth Social and Poast run on basically the same codebase.
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
Quite disturbing to see the microblogging equivalent of The Daily Stormer with a multibillion dollar market cap on the stock market…
To be fair, the code is not the content.
He was their technical director and the site is absolutely covered with Nazis. Find me a Soapbox instance that isn’t.
One of the key features of Soapbox (outside of Truth Social) is that you can still see and boost content from other instances that have blocked yours. Gleason even created workarounds to defeat authorized fetch.
This is so that they can engage in Kiwifarms-style harassment.
I would absolutely say that the malice is written into the code itself.
