The MAGAts are about to be slaughtered, not just fleeced. A lot of people are going to be making gobs of money and run, and MAGAts don't even have a clue believing that he is a successful businessman. Even a $200Million valuation is too high, a venture that is burning through cash, 50M loss in first three quarters in 2023 while earning $3M. And Trump has chosen his own initials DJT for a stock symbol, easy for the MAGAts to recognize and its a symbol he last bankrupted. He must believe that the symbol will bring him luck, like another bankruptcy after all the money is gone.
Quote:
Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is set to begin its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”
Wall Street is assigning Trump Media an eye-popping valuation of around $9 billion – a price tag that experts warn is untethered to reality.
Shares of Digital World Acquisition Corp., the shell company that is about to become Trump Media, have spiked nearly 200% so far this year. That includes a 35% surge Monday after the deal closed. Shares are climbing another 8% in premarket trading Tuesday.
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.
Ritter said the closest parallel would be GameStop, AMC and other so-called meme stocks that skyrocketed during Covid-19 as an army of retail traders piled in. He said Trump Media is likely worth somewhere around $2 a share – nowhere near its implied stock price of $50.
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https://www.cnn.com/2024/03/26/marke...ial/index.html