Trump’s Truth Social is now a public company. Experts warn its multibillion-dollar valuation defies logic | CNN Business
Trump’s Truth Social is now a public company. Experts warn its multibillion-dollar valuation defies logic | CNN Business
https://edition.cnn.com/2024/03/26/markets/trump-media-stock-truth-social/index.html?iid=cnn_buildContentRecirc_end_recirc
For the first time in almost 30 years, part of Donald Trump’s business empire has gone public. Trading started with a bang.
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 gullible idiots will disappear.
They'll just jump on the next grifter that tells 'em what they want to hear.
Sure ok but they won't be hanging around on truth social clicking ads for gold or supplements.