Last night, Chump lost almost everything he invested in Truth Social

[FakeNoose]

The Guardian link: https://www.theguardian.com/business/article/2024/sep/04/trump-media-djt-stock

Donald Trump’s tiny social media empire has seen its extraordinary stock market rally wiped out by a steep sell-off.

Shares in Trump Media & Technology Group, owner of Truth Social, closed below $17 on Wednesday, reversing all their gains since the company’s rapid rise took hold in January.

The former president has been prohibited by a lock-up agreement from starting to sell shares in the firm until late September. While his majority stake in the firm is still worth some $2bn on paper, its value has fallen dramatically from $4.9bn in March.

Screenshot:


As a business, TMTG is not growing rapidly. It generated sales of just $4.13m in 2023, according to regulatory filings, and lost $58.2m.

- more at link -

I don't know how much dough he put into this venture initially, but his stocks will be almost worthless by the time he's able to unload any of them. As we all know ... everything he touches, dies.

[captain queeg]

1. We all knew this was going to happen. And it's still falling.

[jimfields33]

4. How will he live on only 2 billion?

Even if it falls to 1 billion, that’s more than 100 people spend in a lifetime. Needs to go to zero.

[-misanthroptimist]

8. Two billion doesn't stretch very far...

...when you a multiple of that to Russia (and others).

[Attilatheblond]

15. Two billion on paper to boot

He isn't bringing in new voters and it seems likely he isn't bringing in many new billionaires either.

Anybody have links to the mortgages he is still burdened with? One might foresee a big real estate sell off. And, if memory serves, the whole thing with golf is that it is a dying 'sport'. Loser keeps on losing 'value'.

[Think. Again.]

2. The stock Lost 58 mil and had sales (not profit) of only 4m ???

How is it even still at $17/share???

[notKeith]

16. It's not nearly worth $17/share

A 5x multiple on revenue for TMTG (approx $4.1M in 2023) would make the company worth ~$20M.
A 10x multiple (not reasonable; used for fast-growing tech stocks) would make the company worth ~$40M.
There are 200M shares of DJT stock. Ergo, it's actually worth about 10¢ per share, or, 20¢ per share if you're being charitable.
Here's hoping it actually gets near that point before Trump can sell off his shares in late September.

[tulipsandroses]

3. But according to his fans - He is a good businessman and he would be better for the economy. I suspect this was a sham

Perfect for money laundering.
Why would anyone invest in this company? It was never profitable. It has no product or services other than trump rants.
No respectable business would pay for advertising there. Therefore it is severely limited with being able to profit from advertising dollars.

[jimfields33]

5. Oh brother, he can claim a loss and continue paying 800 dollars in taxes.

[karynnj]

17. Maybe not

I think he put little or no money in, thus his basis is zero or close to it. The fact that it was super inflated when it went public is not relevant. The fact that it was included in estimates of his net worth doesn't matter.

[FakeNoose]

6. Well it's certainly not Facebook, I guess it's closer to Xwitter For Idiots ...

... but nobody wants to buy advertising on it. I wonder why?

Chump thinks just anything with his name on it will automatically be worth something. But actual business people are smarter, and most of them know better than to invest in Chump's crap.

Anyone who buys this stock now, won't get their investment back. So yeah, maybe it is money laundering after a fashion.

[surfered]

7. Sept 20th is the first day Trump can sell his shares. I'm not a market analyst, but...

...I think the price will go down more before that date.

[Irish_Dem]

9. I hate that when I lose $3 billion over night.

It makes me grumpy as I drink my morning coffee.

[Turbineguy]

10. It's there to wipe out everybody else.

There must be a hedge in there somewhere.

[AKwannabe]

11. Fuckin A

Hit em hard right in the old stock price!
Tombstone his stock!!!!

[Probatim]

12. The whole point of this company is not to build a successful business.

It's to get a payout from some of his friends (Russia, Saudi Arabia, and others) and to grift the loyal herd.

He'll cash out the $2bn later this month and leave the loyal herd swinging in the wind. FFF45 will reward Russia and others with more state secrets later on.

[GopherGal]

23. That's how it looks to me, too.

I claim no real expertise or any of this, but it has just always seemed to me that buying the stock was a way for certain entities (foreign governments, criminal enterprises, greedy capitalists, moronic cultists or otherwise) to funnel money to him, rather than an actual investment with prospect of monetary return. I suspect a knowledgable person could look at SEC filings or incorporation documents or something and figure out if his payout is to be harvested via 1) the after-lock-up selling of his shares 2) some sort of "management fee" pseudo-salary paid to himself from the company 3) Some sort of "licensing fee": for use of his name.

To the extent that Truth Social has any value, it has only been as the exclusive site for access to the Orange Abscess's blathering. Even assuming (against current evidence) that this can be converted into monetary value via advertising sales, it always remains one "take my toys and go home" tantrum away from TSF needing to turn to another platform (see the X exclusive interview with Eloon) or losing his newsworthiness after an election loss. So it was always at best a shaky proposition from a financial POV.

[Probatim]

29. It explains the timing of when he can sell his shares - just weeks before the election.

On edit: I realize there are specified time periods for when this can happen but this scheming prick probably factored that into the "incorporation" dates.

[lostnfound]

13. I don't think he put any money in at all

He got a stake but whatever he sells it for is pure gravy.
Stephanie Ruhle covered it properly many months ago.
It’s naive to rejoice that he is going to lose money.
Just a big transfer scheme / money laundering; that’s my understanding.

[FakeNoose]

14. If it's all profit, he can't hide anything from Uncle Sam

Chump will receive a nice tax bill next year, and he won't be able to fudge any numbers.

[ToxMarz]

22. He's not losing any money he invested

But he's losing a hell of a lot of grift gravy, and that's reason enough to rejoice.

[ProudMNDemocrat]

28. His name is worthless collateral.

Even more so now that he is losing to a "girl" who is way smarter than he is and who will make mince meat out of him.

tRump is not a sure bet anymore.

[lastlib]

18. Good.

Couldn't happen to a more deserving treasonous rapist insurrectionist.

Oh, I left out "LOSER."

[calimary]

19. When are we finally DONE with this bastard?

Asking for a friend.

AND asking for ME.

[Ray Bruns]

20. Fake news. It was up to $17.76 a few minutes ago. It's going to rebound any minute now. Believe me!

[BlueWavePsych]

30. Head fake for insiders to unload + some short covering ...

More pain tomorrow.

[Joinfortmill]

21. Happy 💃

[eallen]

24. Unfortunately, that's not quite right

The loss from when the merger was completed is NOT what Trump invested. He likely invested quite little. Maybe only his name. I haven't seen any information about that, and it isn't necessarily public.

The company still is overvalued by a large factor. He still will reap near $2 billion, if he can sell his shares near $17. He won't be able to do that. But he will squeeze it for what he can.

[CaptainTruth]

25. Barchart Technical Opinion: Strong Sell

You love to see it.

https://www.barchart.com/stocks/quotes/DJT/overview

[Silent Type]

26. Don't think trump invested much in the site. It's almost a freebe for him if he sells his stock at anything above $.01.

[LetMyPeopleVote]

27. This is a meme stock that has no real value other than idiots who are stupid enough to buy it

Even at the current price, this stock is over priced

[returnee]

31. Everything I know about TSFConvict....

…tells me:1) he does not have 2 billion of his own money, and 2) he would never invest that much even if he had it to spare.

If the 2 billion came from him it must have been funneled from some other deep pocket source, and someone who was willing to lose it. Because, as we all know, everything he touches turns to shit.

[LudwigPastorius]

32. He got torpedoed by Musk.

Musk took Xitter full Nazi and stole Trump’s potential customers.

Anyway, I’m pretty sure Truth Social tanking won’t affect Trump financially. I seriously doubt he invested his own money in that personality cult circle jerk.

[FakeNoose]

34. I believe you're right about that

Maybe Musk plans to buy Chump's worthless platform (for pennies) and combine it with his own cesspool?

[Blue Owl]

33. The Art of Dump

What a mastermind he is….

[Yo_Mama_Been_Loggin]

35. Oh well