Truth Social shares go into freefall after investors learn how much money it really makes

[Social Media]

 

Investors in the Trump Media & Technology Group, the company behind the Truth Social platform, received a harsh reality check on Monday as the company's financials were unveiled for the first time. The results were far from encouraging, causing shares to plummet by over 15 percent and wiping billions off its market value.

 

The financial statement revealed that the company reported a net loss of $58 million last year, despite generating just over $4 million in revenue. This dismal performance has cast doubt on the viability of Truth Social as a profitable venture, with the company's price-earnings ratio dipping into negative territory.

 

Former President Donald Trump, who holds a significant stake in the company, saw his personal wealth take a hit as a result of the stock decline. Trump's stake in Trump Media, which amounts to approximately 57% of all outstanding shares, plummeted from a peak of $6.25 billion to $4.25 billion.

 

The company's astronomical price-to-sales ratio, significantly higher than that of social media peers like Reddit and Snap, further underscores investors' concerns about its financial health. With a low core user base and struggles to attract major advertisers, it remains uncertain how Truth Social plans to turn its fortunes around and generate meaningful revenue.

 

While there is a possibility for the company to improve its revenue in the future, it will require a clear and effective strategy that addresses its current challenges. Without significant growth in users and advertiser interest, the company's stock may continue to face downward pressure in the market.

 

Overall, the disappointing financial results have raised questions about the long-term prospects of Truth Social and its ability to compete in the competitive social media landscape. Investors will be closely watching for any signs of improvement or a shift in strategy from the company's management team in the coming months.

 

02.04.24

Source

 

[Chomper Higgot]

You heard it from me first.

 

Pump and dump Trump.

[Tug]

Quell surprise lol dident it lose around 83 million last year lol lots of the trump rubes gonna be holding outhouse grade stock,kinda like most of trumps little grifts……

[Chomper Higgot]

58 minutes ago, Social Media said:

With a low core user base and struggles to attract major advertisers, it remains uncertain how Truth Social plans to turn its fortunes around and generate meaningful revenue

 
I doubt racists, bigots and conspiracy nuts are a target audience for most brand advertisers.

[herfiehandbag]

36 minutes ago, Chomper Higgot said:

 
I doubt racists, bigots and conspiracy nuts are a target audience for most brand advertisers.

But they are the audience which Trump wishes to buy the stock...

[Chomper Higgot]

Just now, herfiehandbag said:

But they are the audience which Trump wishes to buy the stock...

Yes, the conman’s marks.

 

 

[earlinclaifornia]

8 minutes ago, Chomper Higgot said:

Yes, the conman’s marks.

 

 

I would take the profit from shorting this stock and short it again.

[sirineou]

4 minutes ago, earlinclaifornia said:

I would take the profit from shorting this stock and short it again.

Sorting is very dangerous because it has limited rewards  but unlimited danger. 

It is not out of the question that trump could will, the stock take off and you are faced with a margin call that would ruin you. 

[Danderman123]

34 minutes ago, earlinclaifornia said:

I would take the profit from shorting this stock and short it again.

I would, if I knew how to short a stock.

[Danderman123]

I had a friend who owned a company that went public, but he was locked out of selling for 6 months. On the first day, his shares were worth $90 million. But, the share price dropped every day. By the end of 6 months, the company was bankrupt.

 

I keep that in mind as one of my companies is planning to go public via a SPAC, same as Trump did. I believe I can sell some shares during the lockout period, and I will sell a small amount. On case it goes to $0, like Trump is doing.

[Danderman123]

Since DJT opened at $60+, I don't think the general public had a chance to make any money. The underwriters got a quick kill.

 

I believe you could have made money if you had purchased DWAC previously, when it was $20, and then sold it after the conversion to DJT. Or rather, you have a window to sell at a profit.

[bendejo]

49 minutes ago, earlinclaifornia said:

I would take the profit from shorting this stock and short it again.

 

Maybe not so strange because it is a new issue, but there is a lack of short stats on the internet sites (like yahoo biz).  Heard someone on US teevee say that there was monumental short interest. 

 

 

 

[Berkshire]

4 minutes ago, bendejo said:

 

Maybe not so strange because it is a new issue, but there is a lack of short stats on the internet sites (like yahoo biz).  Heard someone on US teevee say that there was monumental short interest. 

 

 

 

I should have shorted the snot out of this stock.  But apparently, the pros were already all over it like stink on sh*t...

 

[According to The New York Times, Trump Media is currently the most shorted stock on Wall Street.]

 

https://www.thedailybeast.com/trump-loses-dollar1-billion-as-his-media-companys-stock-plunges?ref=wrap

[Walker88]

1 hour ago, Danderman123 said:

I would, if I knew how to short a stock.

Not easy to short a new issue. To short you must borrow stock (and pay the interest, which is particular to the stock in question, its availability to borrow, etc.). Borrow-able stock on a new issue is not easy to find. The more heavily shorted a stock is, the higher the borrowing cost will be.

 

Sometimes you can 'naked short' provided you cover before the settlement date. Day-trading naked short is easier.

[Walker88]

At its high on date of issue, just its 9 million subscribers were 'valued' at $1000 apiece, even though most are probably low income trumpers fantasizing about getting on a rocket-ship-to-the-moon stock. They are not exactly a sought after market demographic, except maybe for chewing tobacco, RC Cola and Moon Pies.

 

At its current value, Twitter (X) subscribers are valued at about $120 a piece, but they tend to be from a much wealthier demographic than trumpers.

 

Even forgetting the fact trump's company had only $4 million of revenue and $60 million in losses, valuing it per subscriber (even allowing it a Twitter value), it would be a $9 stock. With the losses, its incompetent management, and the risk its main "draw" will soon be in jail and lack access to social media, adjusting for risk the stock might be worth 21 cents.

 

Growing its subscriber base is also likely a fantasy, as trump's cult is probably all already on board, at least those who want to be.

 

While it is heavily shorted now---and borrowable stock is not easy to find---a short squeeze is possible. Longer term it's probably a good candidate for a cabinet trade, meaning a short one never covers because the company goes bust. There are still people short Pets.com, and because they never covered, there arises an interesting question of capital gains liability. A position never actually closed is something tax authorities must find.

[Danderman123]

Trump stock is only down 4% after hours.

 

Long ways to go - still.

 

Since most of last week's buyers were Trump fans, this will impact his future fundraising. Anyone losing on DJT is unlikely to donate to Trump.

[Skeptic7]

Just like most/all of his other business endeavors. The crooked, con-man idiot is a consistent LOSER. Many corporate bankruptcies and folded businesses. And a fraudulent "university". 

[spidermike007]

It boggles my mind to think that this company was attributed this level of market capitalization knowing who the founder was. What were these people thinking? 

 

17 of his businesses have failed in the past few decades. Some at huge losses. Trump Steaks, Trump Shuttle Airline ($120 million in losses between 1988 and 1990), GoTrump, Trump Vodka, Trump Mortgage, Trump University, Trump Ice, The New Jersey Generals, Tour de Trump, Trump Network, Trump Magazine, Trumped! Many businesses that licensed his name went bankrupt, or went out of business. And he had between four and six major bankruptcies (depending on the source), including the Trump Taj Mahal (which he spent $1.2 billion building, and was $3 billion in debt within a year of opening), Trump's Castle, Trump Place Hotel (which was very successful prior to Trump buying it in 1988, and he managed to put it into $550 million in debt by 1992!), Trump Hotels and Casinos Resorts ($1.8 billion in debt by 2004, bankrupt in 2009), and Trump Entertainment Resorts.

 

There are likely others. And this does not take into account the 3,600 lawsuits he was involved in as of the time he took office, the vast majority of which were filed by small contractors against his companies for non payment, or total default. Many of these contractors were crushed. It is part of his M.O. This is how he has made most of his fortune. By de-frauding others. That is just who and what the man is. 

 

Nearly anything with his name on it, and his association with it, fails. The man simply cannot negotiate his way out of a paper bag. 

[billd766]

5 hours ago, Danderman123 said:

I would, if I knew how to short a stock.

Google is your friend.

 

https://www.schwab.com/learn/story/ins-and-outs-short-selling#:~:text=Short selling involves borrowing a,broker%2C and pocket the difference.

 

I have no idea either, so I did a Google search.

[TheFishman1]

Trump is a big con artist. Look at everyone company that he had the casinos in New Jersey. He found bankruptcy but he made out like a bandit. There is airplane venture failed hundred percent about the Trump ties the Trump wine how about the university of Trump which was sued and had to close the imaginary doors, everything Trump touches turns to crap. He’s the biggest con there ever was TIT. 

[Colabamumbai]

7 hours ago, Chomper Higgot said:

 
I doubt racists, bigots and conspiracy nuts are a target audience for most brand advertisers.

They will be, soon. 

[RichardColeman]

I support Trump in most things, but there is a major difference in supporting someone and knowing what is a good and bad investment or when to sell. I would have bought this stock on day 1 and sold on late day 1.  I think Trump is a great business man - many of you do not - but this platform business to me is not one of them.

[mfd101]

Would it save the company if he changed its name to something that reflects more accurately its status and purpose?

 

For example: Lies Social.

[CM Dad]

9 hours ago, Social Media said:

 

Investors in the Trump Media & Technology Group, the company behind the Truth Social platform, received a harsh reality check on Monday as the company's financials were unveiled for the first time. The results were far from encouraging, causing shares to plummet by over 15 percent and wiping billions off its market value.

 

The financial statement revealed that the company reported a net loss of $58 million last year, despite generating just over $4 million in revenue. This dismal performance has cast doubt on the viability of Truth Social as a profitable venture, with the company's price-earnings ratio dipping into negative territory.

 

Former President Donald Trump, who holds a significant stake in the company, saw his personal wealth take a hit as a result of the stock decline. Trump's stake in Trump Media, which amounts to approximately 57% of all outstanding shares, plummeted from a peak of $6.25 billion to $4.25 billion.

 

The company's astronomical price-to-sales ratio, significantly higher than that of social media peers like Reddit and Snap, further underscores investors' concerns about its financial health. With a low core user base and struggles to attract major advertisers, it remains uncertain how Truth Social plans to turn its fortunes around and generate meaningful revenue.

 

While there is a possibility for the company to improve its revenue in the future, it will require a clear and effective strategy that addresses its current challenges. Without significant growth in users and advertiser interest, the company's stock may continue to face downward pressure in the market.

 

Overall, the disappointing financial results have raised questions about the long-term prospects of Truth Social and its ability to compete in the competitive social media landscape. Investors will be closely watching for any signs of improvement or a shift in strategy from the company's management team in the coming months.

 

02.04.24

Source

 

Trump is a very poor business man who is well known for failed businesses and filing bankruptcy. 

[scottiejohn]

57 minutes ago, mfd101 said:

Would it save the company if he changed its name to something that reflects more accurately its status and purpose?

 

For example: Lies Social.

Or better still; "Anti social lies"

[Danderman123]

None of the Trump fans here admit to having bought any DJT stock, probably because most aren't US citizens.

 

 

[jerrymahoney]

1 hour ago, scottiejohn said:

Or better still; "Anti social lies"

Or something like "Alternative facts you can believe in."

[candide]

15 minutes ago, Danderman123 said:

None of the Trump fans here admit to having bought any DJT stock, probably because most aren't US citizens.

 

 

Most of them know he's a conman.....

[scottiejohn]

22 minutes ago, jerrymahoney said:

Or something like "Alternative facts you can believe in."

Not possible from that MAGA/MEGA Maniac!

 

[scottiejohn]

24 minutes ago, jerrymahoney said:

Or something like "Alternative facts you can believe in."

If you actually believe that what that MAGA/MEGA Maniac posts are actual facts then you and your ilk have a major problem!

You also have an even greater problem when you do not seem to understand the meaning of  "Alternative facts"!

Just one of many similar definitions for you to try and digest!

"to talk about alternative facts is to talk about the opposite of reality (which is delusion), or the opposite of truth (which is untruth)."

alternative facts Meaning & Origin | Slang by Dictionary.com

Also;

Alternative facts - Wikipedia:

"Alternative facts" was a phrase used by U.S. Counselor Kellyanne Conway in which she  stated that Spicer was giving "alternative facts". Todd responded, "Look, alternative facts are not facts. They're falsehoods." 

(edited by me for brevity= full text in the link)