Trump's Media Company Valuation Not Tethered in Reality

[noStemsnoSTICKS]

Most financial experts agree that the real value of Trump's windfall from his media company (Truth Social) going public are highly exaggerated and not based in reality. I'm guessing by the time he's ready to liquidate his shares the value will be a fraction of what it is now.
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Excerpts from Story

Trump Media generated just $3.4 million of revenue through the first nine months of last year, according to filings. The company lost $49 million over that span.

And yet the market is valuing Trump Media at approximately $11 billion.

For context, Reddit was only valued at $6.4 billion at its IPO last week — even though it generated 160 times more revenue than Trump Media. (Reddit hauled in $804 million in revenue in 2023, compared with Trump Media’s annualized revenue of about $5 million.)

“At these levels, it appears untethered to its underlying business results,” said Matthew Kennedy, senior IPO strategist at Renaissance Capital. “Eventually, valuations tend to fall back on fundamentals. That means this stock is definitely at risk of plummeting back down to earth.”

Ouch

 

[St. Louis Hawk]

Foreign money ain’t gonna launder itself.

 

[binsfeldcyhawk2]

Does anyone on here actually post on truth social?


I know chis monitors it but don’t think he actually posts on it.

 

[noStemsnoSTICKS]

Does anyone on here actually post on truth social?


I know chis monitors it but don’t think he actually posts on it.

I used to post on there and then got banned. I could have applied to be reinstated but it was actually starting to get pretty boring.

 

[StormHawk42]

Never bought Put options before but feel like I might need to. As soon as Trump sells a bunch of shares, it’ll plummet. There’s absolutely no chance a social media company with 600k users and $5 million of revenue is going anywhere.

 

[ICHawk-I]

I think if Trump, as a major shareholder, has to notify the SEC in advance if he is going to sell or borrow against a large amount of shares. That filing is public record and if/when he does plan to sell or borrow against to access cash to pay off his debt to NYC, I think the stocks crash.

Then again, MAGA is really stupid and would gladly go down with the ship while Trump rows away in a luxury life boat.

 

[noStemsnoSTICKS]

Never bought Put options before but feel like I might need to. As soon as Trump sells a bunch of shares, it’ll plummet. There’s absolutely no chance a social media company with 600k users and $5 million of revenue is going anywhere.

Exactly my thoughts as well.

 

[BondHawk]

"No shit" is the only necessary response to the OP.