Trump Media to fail?

Bradskii · Apr 1, 2024

Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

Shares in Trump Media dropped 21.5% as auditor discloses ‘substantial doubt’ over company’s ability to continue operating

www.theguardian.com

'The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.

While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.

Net losses at Trump Media came to $58.2m in 2023.'

A high of $61.00 is now $48.66. Stay tuned...

iluvatar5150 · Apr 1, 2024

$4m is so pitifully low. I used to work for a company that did revenues about like that (15-20 years ago, not adjusted for inflation). We were a small boutique online retailer with 10 employees, not a Twitter competitor fronted by a billionaire former president.

Trogdor the Burninator · Apr 2, 2024

Bradskii said:
Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

Shares in Trump Media dropped 21.5% as auditor discloses ‘substantial doubt’ over company’s ability to continue operating

www.theguardian.com

'The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.

While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.

Net losses at Trump Media came to $58.2m in 2023.'

A high of $61.00 is now $48.66. Stay tuned...

The Sydney Morning Herald had a more detailed article which went in deeper. Paywalled, but the gist of it is:-

Trump Media generated only $US751,500 of revenue in the December quarter after attracting a meagre $US3.4 million of revenue for the first nine months of last year. Annualised, that fourth-quarter performance would produce only $US3 million of revenue – the business’s revenue generation decelerated significantly in the last three months.

And the best bit - given it's a $4 billion or so valuation...

Its only real assets are $US273 million of cash, largely delivered by the merger and which have given it $US218.2 million of shareholder equity and Donald Trump’s personal brand.

So a $4 billion (valued by the stock market anyway) company, which is actually propped up by a cash injection that now comprises most of its assets, making revenue figures that a middling restaurant chain probably gets close to.

Quite a few shareholders are gonna take a massive bath on this one.

durangodawood · Apr 2, 2024

Cmon Trump people, hang on to your DJT just a few short months longer so @realDJT can dump it first and leave you holding the bag. Its the least you can do.

ThatRobGuy · Apr 2, 2024

Did a bunch of posts in this thread disappear or something? I could've sworn I hit the post reply button in here

Nevertheless, I'll re-post a somewhat abbreviated version...

Trying to launch a new company in a saturated market (where the top providers in that space already have a critical mass) was already going to be an uphill battle. That battle is made even more "uphill" by the fact that there's a toxicity associated with the guy who owns it in the eyes of half the population.

It'd be like Vince McMahon (who's currently surrounded in scandal and negativity) trying to open a 4th steakhouse in a town that already has 3 existing popular steakhouses that people know, enjoy, and are already familiar with.

Plus, the premise of truth social over-estimated how much people want an echo chamber, and under-estimated how much people want to be able to engage in online bickering (which requires a platform that people from both sides are participating in, in large numbers). According to some reports, conservatives outnumber progressives on that platform by nearly 6 to 1. So for conservatives who are looking to argue with liberals, they're not going to find a lot of opportunities to do that on Trump's platform.

iluvatar5150 · Apr 2, 2024

ThatRobGuy said:
Did a bunch of posts in this thread disappear or something? I could've sworn I hit the post reply button in here

Were you replying to one of the new guys? I don't remember if it was this thread or another, but I'm pretty sure at least one of them had all of their posts removed.

Richard T · Apr 2, 2024

Bradskii said:
Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

Shares in Trump Media dropped 21.5% as auditor discloses ‘substantial doubt’ over company’s ability to continue operating

www.theguardian.com

'The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.

While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.

Net losses at Trump Media came to $58.2m in 2023.'

A high of $61.00 is now $48.66. Stay tuned...

The stock is way overvalued by all humanly metrics, but a good way to donate to Trump if one likes. If the latter is the case, you can probably get shares far cheaper, maybe even in the single digits when it goes way down.

Estrid · Apr 3, 2024

Bradskii said:
Trump’s stake in Truth Social falls by $1bn after company reveals $58m loss

Shares in Trump Media dropped 21.5% as auditor discloses ‘substantial doubt’ over company’s ability to continue operating

www.theguardian.com

'The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.

While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.

Net losses at Trump Media came to $58.2m in 2023.'

A high of $61.00 is now $48.66. Stay tuned...

Who didn't see this coming.

7thKeeper · Apr 3, 2024

Richard T said:
The stock is way overvalued by all humanly metrics, but a good way to donate to Trump if one likes. If the latter is the case, you can probably get shares far cheaper, maybe even in the single digits when it goes way down.

Read a few articles on this. It would appear that some of the price drop was a simple pump and dump by initial buyers as well. One person who invested on first day said, not quoting them exactly here, that MAGA will blindly pump the stock up, so it was a good short investment.

RestoreTheJoy · Apr 3, 2024

7thKeeper said:
Read a few articles on this. It would appear that some of the price drop was a simple pump and dump by initial buyers as well. One person who invested on first day said, not quoting them exactly here, that MAGA will blindly pump the stock up, so it was a good short investment.

The only way to know is to see what will happen in time. It could go either way.

Bradskii · Apr 15, 2024

Bradskii said:
A high of $61.00 is now $48.66. Stay tuned...

Trump’s Truth Social Holdings Down To $2 Billion As DJT Stock Crashes Again

Trump Media’s stock losses Monday wiped out almost $500 million in Trump’s net worth.

www.forbes.com

'Trump Media’s $27 share price Monday is a whopping 65% below its $79 peak on March 26..'

Maybe Trumps new theme song:

Trogdor the Burninator · Apr 15, 2024

Bradskii said:
Trump’s Truth Social Holdings Down To $2 Billion As DJT Stock Crashes Again

Trump Media’s stock losses Monday wiped out almost $500 million in Trump’s net worth.

www.forbes.com

'Trump Media’s $27 share price Monday is a whopping 65% below its $79 peak on March 26..'

Maybe Trumps new theme song:

From the time of the story you posted 2 weeks ago, a $2 billion loss is around $100k lost per minute.
I've seen meteorites plummet to Earth slower than that.

Whyayeman · Apr 15, 2024

RestoreTheJoy said:
The only way to know is to see what will happen in time. It could go either way.

This is a real test of loyalty for the MAGA investor/donor. We shall see.

RestoreTheJoy · Apr 15, 2024

Whyayeman said:
This is a real test of loyalty for the MAGA investor/donor. We shall see.

It is just another stock. People will buy, not buy, hold, not hold as they see fit. Some will make money. Some will lose money.

Bradskii · Apr 15, 2024

RestoreTheJoy said:
It is just another stock. People will buy, not buy, hold, not hold as they see fit. Some will make money. Some will lose money.

If anyone had some spare moolah lying around they should have bought short and made a killing. They'd be the only ones making money. Anyone else who has bought the shares is losing.

'Trading in Trump Media & Technology Group (DJT.O), opens new tab, which operates Truth Social, has been volatile since its listing on March 26, attracting both loyal Trump fans and short sellers who see the stock as wildly overvalued.' https://www.reuters.com/technology/...any-says-it-could-sell-more-stock-2024-04-15/

The group lost nearly $60 million last year against an income of just $4 million. I mean, you have to work quite hard to get figures like that.

Pommer · Apr 15, 2024

Bradskii said:
If anyone had some spare moolah lying around they should have bought short and made a killing. They'd be the only ones making money. Anyone else who has bought the shares is losing.

'Trading in Trump Media & Technology Group (DJT.O), opens new tab, which operates Truth Social, has been volatile since its listing on March 26, attracting both loyal Trump fans and short sellers who see the stock as wildly overvalued.' https://www.reuters.com/technology/...any-says-it-could-sell-more-stock-2024-04-15/

The group lost nearly $60 million last year against an income of just $4 million. I mean, you have to work quite hard to get figures like that.

And now that the “borrowing fees” are a mere 124%, (down from 790%), investors risk only about 10¢/sh, to continue to short the stock.

RestoreTheJoy · Apr 16, 2024

Bradskii said:
If anyone had some spare moolah lying around they should have bought short and made a killing. They'd be the only ones making money. Anyone else who has bought the shares is losing.

'Trading in Trump Media & Technology Group (DJT.O), opens new tab, which operates Truth Social, has been volatile since its listing on March 26, attracting both loyal Trump fans and short sellers who see the stock as wildly overvalued.' https://www.reuters.com/technology/...any-says-it-could-sell-more-stock-2024-04-15/

The group lost nearly $60 million last year against an income of just $4 million. I mean, you have to work quite hard to get figures like that.

Some people did buy early and make money.

Lots of companies lose and gain in certain periods, depending on what is going on.

He's been hit pretty hard financially the past couple years, fending off all the lawsuits intended to remove him from the campaign (like the ballot suit) or at least from campaigning.

Bradskii · Apr 16, 2024

RestoreTheJoy said:
...intended to remove him from the campaign...

This would normally be classed as a conclusion, but there's an awful lot of lot of people that start with this fallacy and then invent a fantasy world around it.

seeking.IAM · Apr 16, 2024

On the positive side, such a financial loss would be good for Mr. Trump's tax picture.

RestoreTheJoy · Apr 16, 2024

Bradskii said:
This would normally be classed as a conclusion, but there's an awful lot of lot of people that start with this fallacy and then invent a fantasy world around it.

Well, if you consider the current case, attaching an expired state misdemeanor to a federal campaign fund charge from 8 years ago in an attempt to get criminal convictions in an election year when the defendant is actually running, utilizing as witnesses a prostitute (or shakedown artist, depending upon which iteration is accurate), a convicted felon for perjury (!!), and the National Enquirer as your witnesses to prove said crimes....you might be in the two standards demographic.

Trump Media to fail?

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