Not even the Flying Spaghetti Monster will save us from the chaos created by Trump this year. Desperation makes them throw the pasta against a wall like Catsup, diverting attention from a 10% trade tariff under Trump with the threat of, wait for it…. EVs.
They say the bigger they come, the harder they fall. That reckoning always comes eventually for meme stocks ‒ and Trump Media & Technology Group appears to be no exception.
Donald Trump’s namesake social media company burst out of the gate on its first day of trading Tuesday, opening at $70.90 and soaring as high as $79.38 as Trump fans and opportunistic traders bought up shares. But the price faded late in the session and has bounced along at lower levels ever since, ending Thursday down $4.26 at $61.96 on the Nasdaq. The stock exchange was closed Friday in observance of Good Friday.
Trump Media's market valuation, just over $8 billion, is still stunning for a social media fledgling with an unproven business model that has struggled to attract users and advertisers, burned through cash and racked up losses.
“The valuation of the company should be several hundred million, not the billions it is currently valued at,” University of Florida professor Jay Ritter said.
Thursday’s slide into the red could be just the beginning, market observers say. Ritter predicts the vanity stock ticker DJT will bottom out around $2 a share – or worse.
“The stock will continue to be very volatile, with sharp moves up and down. But the long-term trend will be down,” he said. “The company has about $2 in cash per share, but it will probably burn through that money and the most likely outcome is eventual bankruptcy.”
www.usatoday.com/…
Ben Meiselas @meiselasb
The emergence of DJT, the NASDAQ-trading stock of Trump Media and Technology Group(TMTG), could be Trump's biggest and most threatening financial grift to date. While the press focuses on the drama of whether Trump will successfully post a bond for the civil judgment outstanding in the New York fraud case he lost, and the silly Bible-selling drama, the press is barely grasping the enormity of the real grift in play (not enough understanding of the mechanisms of the stock market)
The now freely trading NASDAQ stock DJT, the product of the SPAC merger into DWAC, is now a legal conduit for any amount of funding, from any malign parties anywhere in the world, to fund Trump's campaign as well as bail him out of the financial jeopardies of the civil cases against him. The regulatory ring-fences protecting our political system from foreign influence (even as leaky as Citizen United has rendered them) are of no protection whatsoever when the U.S. public stock market is the conduit. Full analysis: https://meidastouch.com/news/opinion-djt-trumps-yugest-con-to-date 9:18 PM · Mar 28, 2024
#DJT had $4M cash at the end of 2023.
#DJT was in $39M loss in 2023
#DJT never turned any profit
#DJT quarterly revenue is barely $1M.
How is #DJT valued at $8B?
According to The Wall Street Journal’s Amrith Ramkumar, should Trump receive a waiver from his board, company rules will permit him to sell “several hundred million dollars worth of stock” over a three-month period. That will surely be sufficient to provoke a sell-off by the APTs (who by definition are in it only for the money) and to wipe out, in turn, the T.B.s, who bought shares because they believe in the once and future President Donald Trump. Maybe the T.B.s wouldn’t mind; maybe it’s even what they expect. Nine years after Trump burst onto the political scene, the most baffling truth about Trump is still best encapsulated by that great New Yorker cartoon from 2016 in which two lambs look up at a billboard showing the Big Bad Wolf, in suit and tie, saying, “I Am Going to Eat You.” In response, one lamb turns approvingly to the other and says, “He tells it like it is.”
newrepublic.com/...
In other law & order.