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.
WELCOME TO FINANCE! There are no rules, and if we break them, we remake them!
This is a case where I literally both hate the player and the game.
smh, it’s going to flop like his hotels.
So trump social is going higher then reddit? Idk if i want to cry or laugh.
Reddit is mostly bots. Trump social is gullible idiots. Selling gold and prepper shit on Trump social is going to be profitable. Reddit ads are garbage and have been hated by the user base since their inception.
Yeah but if, suppose, Trump died or even just loses the election, 2 very likely circumstances… the gullible idiots will disappear.
Follow the money. I guarantee this is Russian financing being done at a remove.
Being untethered to reality is literally in the core of stock trading. It’s nonsense, modern day magick for the least cool people.
literally in the core of stock trading
Value Investors might argue otherwise. I’ve got more than a few shares in stock with a sub-20 P/E ratio. They do exist and you can make money holding them.
They just don’t have the rocket ship like growth of your Magnificent Seven or your even more speculative stocks.
