www.bloomberg.com/news/articles/2024-04-08/trump-media-spirals-as-37-dive-from-debut-close-erases-billions
Trump Media Spirals as 37% Dive From Debut Close - Erases $2.8 Billion in Value
Feature StoryThat’s generous considering the losses.
No joke. I would likely consider ownership of that company a pure liability
I've never seen a stock go below zero, but I wouldn't be surprised if trump found a way for shareholders to owe money after the stock goes to zero.
He'll invent dnedivid. That's when shareholders pay into the company to compensate losses.
Instead of getting paid out every few months for owning the stock, you have to pay in. Brilliant.
They can call it a subscription stock: as long as you pay the subscription fee you get to keep it.
Except then you could theoretically not pay and get rid of it.
This stock needs to be an albatross, hanging filthy and rotten from your neck, stinking and draining your money until you somehow convince some other idiot to take it off your hands.
And his cult followers would gladly buy into it because they’re just that fucking stupid.
I’ve never seen a casino go bankrupt either. But Trump has the Miedas touch.
I've never seen a casino piss off boxing like he did in the 90s with his "War Clause" renegotiation. His casino was a boxing capital in the 80s and he ran the fights off to Vegas.
I don’t think he could change a tire tho
He managed to take the price of a barrel of oil below zero, so it's not entirely unreasonable to think he could do the same thing with truth social.
Oil and gas went below around the beginning of the pandemic. That's the only time I remember.
That's a commodity not a share in a stock though, slightly different
SPACs have some value because you can re-use them to fuck the next guy.
Thanks, SEC.
Exactly. How can a company be worth anything when it doesn’t make money, or like in this situation where it lost money?
Amazon didn’t make a profit for a long time but it seemed reasonable it would one day. With Musk owning twitter and targeting the same audience, I just don’t see a future where this platform grows much larger.
Twitter has also lost half its revenue since Musk took over if reports are to be believed. It was struggling prior to Musk’s takeover already.
any other company it would be a penny stock by now
Dude my small business took in almost as much revenue last year as Truth last year, and turned a healthy profit. Truth lost 10x what it brought in. It’s not worth a fucking thing.
When they say lost, does that just mean paying huge salaries to the dbag officers/Trump? The opex can’t be very much for running a very shitty Mastodon implementation. And the revenues were about what one average Chik FIL A makes in a year lol.
The average Chick-fil-A location actually makes closer to $9 million in annual revenue lol
Yup, its auditors likewise said so
One ruble
Not before Trump cashes out...
He currently cannot, and 78 million shares becoming available would sink the stock to a dollar pretty goddamn fast.
There also have to be buyers for all those shares and there’s going to be less and less of those as the price sinks.
Not necessarily. Trump has a lot of poor, dumb supporters. For them being able to buy 100 shares for $5 on RobinHood might be very popular.
I doubt it. There will definitely be supporters who will buy into it, but not enough to buy as much as he is selling.
Now foreign governments buying a presidential candidate, there will definitely be some of those.
Exactly. Such an obvious bribery channel and it’s gonna get used.
An aside question, those two guys who actually created it, were given stock of it and are being sued by Trump…were/are they able to cash out?
True but dont think for a second Trump cares about his investors. when he can cash out he 100% will. then get the same rubes that forked over cash to do it again when he declares bankruptcy and goes on to start his next con job
He can’t sell too much or he will lose control and governance rights. He’s trapped.
he is probably shorting with everyone else lol
Wouldn't that get him more criminal charges?
What's a criminal charge without consequence.
Thats called a ‘ha’ in trump world
True that
Exactly, he will just gum up the works until he comes to power and has the judge executed and the prosecution sent to gitmo for each of his trials. The jurors he may unleash his mob upon.
I wouldn't be surprised. Let's not forget how much stock manipulation he was doing as president. He was constantly crashing stock prices with random ass tweets.
He can't sell for 6 months. He can borrow against his shares as collateral, but lol.
Russia and China can save it, it would be a good investment for them. Buying the USA for 2 billion?
Bit harsh.. I saw someone write out that it is more like 1.20$ a share..
Erases $2.8 billion in fictitious value. It was never worth anything close to 7B.
Who the fuck made that valuation? They need to fall down as well!
People who needed their trump bags held.
If people paid money for the shares then it was worth that. It’s how shares work. They just can’t sell the shares at anywhere near what they paid.
All money laundering
On Brand I see.
Still might be his most successful business.
He should have stuck with inheriting.
To Trump’s defense , he finally found something that he’s really good at ( failing ) , so he keeps on doing that . He can try to break the world record of most failures in a lifetime .
I have DJT on my ticker. Just for Lulz
Haha. You and me both. It's been good for a laugh.
Ok the bright side it took zero work so no contractors are left holding the bag and nothing of value was lost.
These are rookie numbers, we need to see that figure go to 100%!
I'd rather it sit steady at 98.9% so it's worth like 14 cents
It's the goddamn Deep State and radical Liberals at it again!
/s
$36.27!! Let the drop continue!!!
Diamond-hands becomes Trump-hands.
Think of all the karma he could farm showing his 📉 on WSB.
Heh; he wouldn't last a day on wsb before getting perma-banned.
I got banned from wsb over the weekend, suspended really. I made a post which was removed. I made another post that referenced the removal of the first post. Evidently referencing the removal of a post is grounds for temp-ban. Rules don't say that I don't think.
Trump would say something stupid and he either gets perma-banded, or the mods let him slide because of the publicity of Trump talking shit on wsb.
Your actions are as highly regarded in WSB\ as would be “investing” in OTM calls in DJT.
Tiny little hands?
We need an opposite meme of the GameStop Stonks guy saying “I just don’t like the stock.”
Hold idiots hold!
Anyone who doesn't put their money where their mouth is and hold is a communist
Our lord and saviour sir Donald Trump master of the bail out needs help bailing out
Invest in our cause, our fight for a free America 🙏🏻
It's not a loss if you don't sell!
Hodl! 💎 🙌
HAHAHAHAHAHAHAHAHAHAHA,takes breath HAHAHAHAHAHAHAHAHAHA.
If it was selling for what it's worth they'd be paying you to buy it...
As per original article 📰:
- Trump Media & Technology Group Corp. has wiped out some $2.8 billion in value as some of the retail traders who frantically bid up the stock last month began to sell.
The social media company that’s mostly owned by former president Donald Trump has slumped 37% from its close on March 26. The stock fell below the level it was trading at on March 22, when investors approved its tie-up with the blank-check firm, Digital World Acquisition Corp.
Trump Media, which owns Truth Social, had soared in its first days as a public company after the private firm merged with DWAC, what the shell company was known as.
But the stock, which trades under Trump’s initials DJT, has struggled to retain the attention of individual investors who bought shares as a way to support the former president in his 2024 reelection campaign.
As the stock slides, the paper windfall for Trump himself has dropped some $1.6 billion to roughly $2.9 billion. For Trump to benefit from the paper wealth, he’ll have to wait six months before he can sell shares under a lock-up agreement.
Trump Media has a market capitalization of nearly $5 billion even after the latest drop despite generating just $4.1 million in revenue last year. That heightened valuation has made it costly and risky to bet against the company, with short sellers facing annual financing costs of more than 450% to borrow the shares, according to brokerages.
The fallout has shades of past meme stocks like GameStop Corp. and other so-called de-SPACs, companies that went public through blank-check deals, which saw initial swings in their stock performance before falling.
More than one-fifth of the nearly 500 SPAC deals that have closed since 2019 are trading below $1 each, representing a greater than 90% plunge. And dozens of them at times saw share prices surge in retail trader-fueled frenzies, meaning losses for some are far greater.
©2024 Bloomberg L.P.
Go Trump, get pump'n'dumped.
I'm calling it right now.... he and his moronic followers will come out saying its a left wing ploy to manipulate the market and destroy an amazing , no the best social media platform around.
.....despite the rest of the world knowing it's nothing more than a haven for extremists, terrorists, and incels..... or basically anyone you really don't want to be able to reproduce.
They are already blaming globalists
Some already think it's a plot against him, fully ignoring the small userbase, lack of major advertising. It doesn't even go i to funding sources or the business reputation of the company leadership.
It's quietly funny that this comment could equally apply to Musk and Twitter
Lets hope they buy stocks then
Don't forget the part where it's based on an open source project (Mastodon) and they basically have to give you the source code if you ask. Iirc even if you don't have an account, it's enough that you visit the site once.
A Trump business ending up like all of his past business endeavors. Yep, he is a great business man. People will lose all their money on this POS' stock scam, and they will blame Biden, the liberals, and antifa. For once I will relish on the savouring of MAGA tears.
About 60% of the way to go then...
My buddy heard in North Carolina said he overheard a bunch of factory working guys at a bar last week all agree to cut their cigarette and liquor budgets to conserve money to buy shares in the most patriotic company in America to “be in the market for the bull run”.
Hope they stay sober for weeks before buying
"$2.8 billion"
Remember, this rapist failed at a casino, among many things.
It’s nearly impossible to fail at a casino barring a natural disaster or something unforeseen. They are cash printing machines and Chump must have been inept to have it fail on him.
That's what someone told Trump. So he opened 3 casinos in the same area. lol.
No one loses more bigly than Trump
Who could have predicted this??? lol
So much winning 🏆!!!
I love this for them. 👍
Comically overvalued in the first place though. Didn't Truth Social only do like $4.5m in revenue last year?
And they had a loss of 58 million.
And active users dropped by half.
Ya but they didn't tell people about that until a week after saying they made 58 million in 2022
So you’re saying there’s 63% to go.
Holy shit! The thing that stock market analysts said was going to happen, happened!
"value"
Trading Traitors
Is there a way regular folks can short this?
Not anymore, failure is priced in
Can't wait for the Netflix doc about it, called "The Small-Handed Short"
Another scam by trump. It was not valued even close to a billion dollars before it went public. Can’t wait for it to crash and burn like trump airlines, trump casino, trump university, trump steaks, trump water yes the list goes on. Sad part is the maga morons that bought stock will blame the left or anyone but him
Given the still insane valuation this dive will not end anytime soon. A reasonable valuation would be far less than $1/share. Even that would be a rich and relatively stupidly high valuation.
That thing is worth zero dollars
Not done going down. It’ll level out soon, around…zero.
It's still insanely overvalued.
Honestly though, why is it even that high? It depends on a guy who is likely maybe (sorry I forgot rich people dont go to prison in America) going to prison, and who is at best a 50-50 shot to win the election. It's an insanely risky bet and if you win you know own shares in a company run by someone who has failed at literally everything he has ever run
I mean even now the valuation is absurd. They don't make any money. They don't produce anything. It not worth shit
Grifters gotta grift
Hmm much worse than reddit.
If I had a couple thousand dollars to burn and understood nothing about the stock market, what's the ELI5 on shorting this stock so I can make money off of idiots, also?
You can borrow shares to sell short, but the interest rate on borrowing is around 800% last I looked.
Other way is options, you could buy puts and hope it tanks. Now, because of the volatility, the price is relatively high.
Me? I bought $10 June puts last week.
Sadly many people who invested also had a lot of debt erased. Trump will still make some money off this. His ardent followers will lose money again.
🍿 keep going 📉
User deleted comment
2mo
They do have $200 million in cash - from the IPO but still.
They will blow through it but if they liquidated tomorrow they could return a dollar to each shareholder.
Investment of the stupid
You just know there are countless MAGAts holding the bag with their life savings for this worthless POS stock. Delicious.
How can it erase money that was never there?!?!
Thinking the same thing. It was always a scam.
Better call Putin to pump more money into this dogshit company, can’t continue this crime spree broke
I said it before and I’ll say it again. This thing will be on the otc/pink sheets within a year. This thing lost $40m in 9 months. Htf can idiot not expect a valuation of $7b on this POS?
The best reason to short the hell out of DJT? Because Trump owns 60% of the shares.
Trump is saying thats fake news. Just a rumor started by Hillary Obama and Jimmy Kimmel
Pravda Social sinking like the USSR.
There never was any value to begin with.
Everything that Trump touches turns into shit.
Lol this is so fucking funny
There’s no real value hard to believe it was “erased”.
I hope there were enough people smart enough to short Trump Media into the ground.
🍿🍿
I love good news ☺️
Failing faster than a flaming cybertruck
Lets be clear here - 2.8 billion wasn't erased.
It was transferred to someone else's hands while they shorted the shit out of the stock.
Dum dum dum dum Trump's going to crash and burn yay everything Trump touches dies there's the proof well there goes his 2.8 billion dollars he can't cash out in 5 months I can't pay my bond just time to sell the properties to the lowest bidders
“Value”
Its all because of this woke eclipse! Trump tonight on TS
To be fair. It never really had any value.
More
Please dont use the term "value" like that. Its valuation is nuts as is for so little revenue in a media company with a captive base and limited market potential.
I love asking my bitcoin friends how they determine the value of bitcoin?
crickets.
The cash in my bank account is guarded by similar levels of encryption.
Let it prolapse like Trump’s anus
Question, can they just privately sell shares for more than market value? Isn’t this still a viable money laundering venture?
Good
Absolutely no one saw this coming! And no, I’m not going to waste my time indicating sarcasm because if you can’t tell then God help you.
Act now and you can get Trump stock for half price! Just give your credit card for three easy payments …
Hope maga losers lost millions on this scam they deserve it
"go woke go br... wait a minute"
Now erase the rest
I’m a great businessman, perhaps the greatest, they say
I watch this and wonder how many people put their whole life savings into this so connected people can pull out at the right time leaving the rest pennyless.
Not enough!
37 down, 63 to go… bring it.
Say it aint so. No one could have thought this would ever happen. 🤣
Felix Salmon said DJT is designed to be a meme stock. So I think two things are likely true: it’s going to be unpredictably volatile. And Trump may still reap a giant windfall
I’ve read that he’ll still have a big cash out if the stock is still worth $14/share in 6 months. This is looking more and more doubtful 😀
Doubt it. It will be even a lot lower when he can sell in September.
Crash & Burn!!!
Fuck I sold at 10% down
The invisible hand has a nice slap to it 👋
A loser who can’t stop losing!
Was ”value” really erased?
I wonder how the people who got in early on the short doing? Bet they are just watching their money increase daily hoping this asshole says some more dumb shit
I’m kind of surprised it isn’t dropping faster
👏....👏....👏....👍
Lots of money being made for the shorters.
My heart goes out to Trumpists whom are getting fleeced by this rug pull scheme.
GME de-SPAC'd?
The truth hurts.
Well duh?!
GLORIOUS!!!
Was it Obama fault or Biden? Oh I heard it was Rudy who made the stock plunge. No my bad , it was the libs!
Another scammy washout.
In a row??
Last week the short interest was 12%. Short fees was between 500-750% (annualized). So it is difficult to short DJT.
How much did Trump cash out on the first day? That’s the question.
He can’t cash any until 6 months after IPO.
I should have dumped my life savings into puts. By the end of the week, I will think I should have bought puts again, but I won't because I'm a pussy.
Baga-Holders
Get your pump and dump here folks!
Is there any chance this is like, a planned pump and dump?
Can someone make us some blue hats that say Make Donald Lose Again, then below (and again and again and again),
"Truth Social"
Even the name is disgusting.
How can value be lost on something that has no value..😕
Erases or Scooby Doo unmasked?
Is it still insanely expensive with fees to short the shit out of DJT? I know when it floated the no one was willing to sell those positions without some decent fees…
He already got the bag, he’ll just release the NU bible next month and go back to boasting.
So sad. Poor, poor Honest Don. /s
Right on...
Again, trump’s business kiss of death - but after each debacle, the suckers line up to get screwed over again.
Love to see it
"value"
Racing it's way to it's proper value... Roughly one dollar per share