this post was submitted on 26 Mar 2024
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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.

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[–] [email protected] 17 points 8 months ago (3 children)

He can't use the stock as collateral for 6 months either or the other shareholders can sue. This dude is not a financial genius. People smarter than him have tried to game the system. Some win but there are a ton of laws and ways to sue for it.

[–] [email protected] 9 points 8 months ago (1 children)

or the other shareholders can sue.

Being on the wrong side of a court proceeding (or several) doesn't seem to be much of a disincentive to Trump doing whatever he wants.

[–] Omgpwnies 4 points 8 months ago (1 children)

Not to mention if the foreign investors are using this to curry favour with the potential next POTUS, the 'investment' isn't in the $DJT stock, it's in what trump will do for them if elected. They won't sue unless he loses.

[–] anarchy79 1 points 8 months ago

"I'll settle the bill when I get back to the White House."

[–] [email protected] 1 points 8 months ago

Ah, smarter people have tried maybe, but did they have the same amount of zealotous clout?

[–] anarchy79 0 points 8 months ago

Ah yes, thank GOD for the failsafe financial regulations in this country! There are LAWS!

Like, wow.