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submitted 3 months ago by girlfreddy@lemmy.ca to c/news@lemmy.world

Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”

The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.

Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.

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.

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[-] Cyberflunk@lemmy.world 17 points 3 months ago

I'm sure he'll divest before the election, right?

As much as I'd just love to suffer through another press conference with roughly 10 reams of unprinted paper on the table to represent all the stocks he'll be divesting, Trump has reduced the level of discourse and political expectations so much he'll just claim democrats are the ones pushing for him to divest, refuse, and mainstream media won't even cover it.

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[-] RizzRustbolt@lemmy.world 12 points 3 months ago

The whole situation is so fraudulent that you can't even short it.

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[-] ShaggySnacks@lemmy.myserv.one 12 points 3 months ago

The stock market is not about company fundamentals, which they may influence people. However at the end of day, the stock market is all about the feels.

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[-] Cosmicomical@lemmy.world 12 points 3 months ago

short them into the ground!

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[-] tacosanonymous@lemm.ee 12 points 3 months ago

I’m assuming they see massive market potential for running penis pill and gun ads on it?

[-] waterSticksToMyBalls@lemmy.world 10 points 3 months ago

It's literally a platform to talk to the most gullible and easily manipulated group of people. You can hate everything about the platform but you have to admit magas fall for everything and are willing to pay for it. These people bought trump bucks...

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[-] Debs@lemmy.zip 8 points 3 months ago
[-] kent_eh@lemmy.ca 9 points 3 months ago

A meme stock

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[-] Naminreb@kbin.social 8 points 3 months ago

Never has a short selling opportunity been so good…

[-] Sc00ter@lemm.ee 16 points 3 months ago

Short term options are currently valuing almost 400% volatility. Your gonna pay out the ass for put options or for the margin required for a short sale. I wouldn't go anywhere near this.

As they say... that's priced in.

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[-] finickydesert@lemmy.ml 7 points 3 months ago

smh, it's going to flop like his hotels.

[-] chakan2@lemmy.world 10 points 3 months ago

That's the plan. He just needs to cash out first.

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this post was submitted on 26 Mar 2024
602 points (98.2% liked)

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