Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.
But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.
Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.
Like, you aren’t really worth replying to because you’ve got it so fucking backwards, but if you think this stock is that bad, then put your money where your mouth is and buy puts.
I’ve explained it elsewhere so you can paw around and find the longer form explanation, but in a stock market fully detached from fundamentals, making along bet on this stock is betting on a Trump win in November. What price would you think this stock is worth if Trump is once again in the white house?
AMD was worth 18 dollars. Then it was worth two. Now its worth 160. What does a stocks price mean did the actual value of the company swing that much?
Meta dropped 250 billion in value in a single trading session. What did that mean?
How about Nikola. They rolled a prop without any parts that could be considered vehicular down a hill. Their stock was a literal rocket. Its now worth 1/100th that price, and yet they still have a 800 million dollar market cap.
See its either that no stock prices make sense and its all horse shit, or that things are based in fundamentals, and you are just measuring the wrong things. You can’t have it both ways.
If you think you know more than me, then saddle up to the bar and down load some trading app and give the hog a crank. I’m doing just fine making decisions on how I think things work. If you are so confident in your world view, bet on it.