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.
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.
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.
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
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.
Being untethered to reality is literally in the core of stock trading. It’s nonsense, modern day magick for the least cool people.
literally in the core of stock trading
Value Investors might argue otherwise. I’ve got more than a few shares in stock with a sub-20 P/E ratio. They do exist and you can make money holding them.
They just don’t have the rocket ship like growth of your Magnificent Seven or your even more speculative stocks.
Follow the money. I guarantee this is Russian financing being done at a remove.
Don’t forget about the Saudis.
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.
