Trump's Unbearable Temptation to Dump His Truth Social Stock

[Bernardo de La Paz]

8. RDDT & DJT have about same market cap, same negative EPS but vastly different user base

DJT (Trump Media Group) -- {un}Truth Social has about 420,000 users daily (stat seen on DU). It has about 2 million "active" users (link).

Reddit has about 73 million daily users (link). Reddit usage is increasing. unTruth Social usage is declining.

And yet they have the same market capitalization (about 9.5 billion bucks).

The DJT stock price is unsustainable. I read an interesting analysis that pointed out that there is a "gamma" squeeze that might be propping up the stock. Because of the option positions, call option providers must buy the stock to hedge their positions, leading to an overvalued stock in the short term. Plus the float of the stock (shares that could be sold in immediate future) is mostly shorted which has an effect of propping up the stock price, ironically, at least in the short run.