Orangetan's biggest flop ever
Emily Stewart
Apr 22, 2024, 5:22 AM EDT
... DJT popped again, but this time in the bad, bubble-bursting way. Its price fell, and then it fell again, and then it fell some more. The stock staged a bit of a rally at the end of last week, but it's still well off of its March highs. As of the end of trading on Friday, TMTG was trading at $36.38 down 54% from its peak and 41% since I wrote about it three weeks ago. Correspondingly, the former president's related wealth gains have come back down to earth. People on Truth Social feel pretty bad about it. Short sellers, if I had to guess, feel pretty good, even if Trump's company is trying to prevent them from betting against it. Anyone investing in TMTG is in for a bumpy ride ...
The thing about TMTG is that it is not a good business. Its total revenue was $4.1 million in 2023, which is a little more than what a single McDonald's franchise makes in a year, and it lost $58 million the same year. When the stock was near its highs, it was trading at something like 2,000 times the company's annual revenue. That is a lot. Nvidia, the high-flying vanguard of the artificial-intelligence revolution and one of the hottest stocks this year, is trading at about 35 times its revenue ...
... TMTG refuses to tell investors how many people are signing up for Truth Social, whether they're sticking with the platform, or what's happening in ad sales. In regulatory filings, the company says it "believes that adhering to traditional key performance indicators, such as signups, average revenue per user, ad impressions and pricing, or active user accounts including monthly and daily active users, could potentially divert its focus from strategic evaluation with respect to the progress and growth of its business." In other words, it doesn't think publicly disclosing how things are going will be good for its business prospects, which, I mean, tracks to the extent that the truth is probably bad ...
https://www.businessinsider.com/trump-media-djt-stock-price-crash-spac-lockup-sell-shares-2024-4
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