this post was submitted on 15 Apr 2024
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Trump stock tanks after issuing tens of millions new shares (www.cnn.com)
submitted 2 years ago by MicroWave@lemmy.world to c/news@lemmy.world
25 comments fedilink hide all child comments
 

Trump Media & Technology Group’s stock is tumbling again after the company announced a massive new influx of shares. The struggling company is rapidly losing money, and a new stock offering could help it stay afloat.

But there’s a downside to going back to the market with new shares: A new public stock offering of 21.5 million shares announced Monday would add more than 15% more stock to the publicly available shares of the Truth Social owner. That would substantially devalue existing shareholders’ stakes — including that of former President Donald Trump.

Shares of TMTG (DJT) fell more than 15% Monday. The stock had rocketed higher in recent months in anticipation of merging a blank-check acquisition company with Trump’s media business. But it has lost more than 60% of its value from its peak on March 26, the day after the merger was completed and it started trading publicly as TMTG.

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[–] mozz@mbin.grits.dev 0 points 2 years ago (1 children)

Usually, if you’re running for president, you want to invest money into political or media machines that are going to create true believers for you

If you’re taking the already existing true believers, who think you’re a business genius and all your prosecutions are politically motivated and the election was stolen (like really honestly think all of that is what happened, because they are too deep sunk in propaganda to even see the surface)… and creating an opportunity for them to lose a bunch of their own money by investing in your company, like really be exposed on a personal unavoidable level to how much of a fraud you are and always have been… you’re doing it wrong.

I get it. It’s desperation; you have to siphon money out of them because you need all you can get right now. But it still seems like a tactical error, like there must be another way.

[–] SeaJ@lemm.ee 0 points 2 years ago (1 children)

Usually, if you’re running for president, you want to invest money into political or media machines that are going to create true believers for you

No. Usually if you are running for president, you put your investments into a blind trust.

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

No. Usually if you are running for president, you put your investments into a blind trust.

what with his faith in humanity and all.

The 70's are over. Carter putting the farm in a blind trust was rewarded with Republicans bribing Iranian terrorists to keep the hostages longer. Disco is dead.

[–] SeaJ@lemm.ee 0 points 2 years ago (1 children)

The 70s, the 80s, the 90s, and the 2000s. Presidents aside from Trump have always put their investments in a blind trust.

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

Like whats your point? Are you saying Trump would or would not put his stake in Truth social in a blind trust?

[–] SeaJ@lemm.ee 0 points 2 years ago (1 children)

I'm correcting you when you implied that this a practice of decades ago. It is not. It has been the standard. Trump is the exception. I don't foresee that changing. So Trump failing to do so is even worse than if it was some outdated practice.

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

Oh cool. So he'll be putting his shares in a blind trust then?

[–] marx2k@lemmy.world 0 points 2 years ago (1 children)

Even the blind trust knows that's a terrible investment.

In all seriousness, what's the over under whether the company will be delisted from nasdaq this month?

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

not gonna happen. it's taken some hits but there is a good enough chance that Trump will be the next president that it's not going anywhere.

[–] marx2k@lemmy.world 0 points 2 years ago (1 children)

Reality really isn't agreeing with you here bud ;)

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

In what way?

[–] marx2k@lemmy.world 0 points 2 years ago (1 children)

Have you been following the stock at all?

[–] TropicalDingdong@lemmy.world -1 points 2 years ago

Yeah its down. Whats your point?

[–] astraeus@programming.dev 0 points 2 years ago (1 children)

Anyone know the easiest way to short this stock?

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

Just buy puts. You can buy them right now.

[–] jballs@sh.itjust.works 0 points 2 years ago (1 children)

Buying puts are crazy expensive, showing just how shitty the stock is. For all puts a month out, it's gotta lose 25% of its current value just to break even.

With that being said, it's probably a safe bet.

[–] TropicalDingdong@lemmy.world -1 points 2 years ago

sell calls to fund put buying name a more iconic duo

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (3 children)

There has been a pretty steady stream of these articles and then you look at the chart and its like..

Eh. Its in the chop zone. All stocks have been volitle af since 2020.

[–] ganksy@lemmy.world 0 points 2 years ago (1 children)

Always look at the bright side of life

Reddit (rddt) is in the "chop" zone. At the current market cap Truth Social has valued their users at $4115 each. Facebook only values their users at $299.25. If they assumed the same as Facebook, the stock would be valued around $4.54/share!

That's being generous af

[–] TropicalDingdong@lemmy.world -1 points 2 years ago

I mean, just throwing it out there, but I think you are trying to do a bit of fundementals on this. Which is like, fine, and on a sane planet is exactly how you should think about things.

However, we do not live on a sane planet, and when you look at stocks like TSLA, APPL, GME, I mean fuck, basically everything. You look at startup and VC valuations, like the whole fucking thing is so detached from fundamentals. I guess there are some classes of stock where fundamental analysis is how you should determine a valuation, but clearly, fundamentals have not been driving valuations for a very very long time. Its that "something else" that is driving price.

So that being said, does Truth Social have that something else? Truth social is a joke of a social media company. Its not the product or the service or its user base you would be gambling on for this one, its one asshole named DJT. I personally would put a negative value on its users/ userbase. From an advertiser perspective, they might actually cost me money by engaging with the platform That being said, consider if Donny Tinyhands wins in November, what do you think happens to Truth Socials price? Like it exists as a stock SPECIFICALLY to enrich Orange Mangosteen. It would go gang busters. Why? Because he's corrupt as fuck and the stock is a vehicle purely for self enrichment. You think he wont self deal? You think Republicans in the house or Senate would do anything more than wag a finger? Fuck some of them might just end up becoming hypemen for whatever boner-pills or kettle bell testosterone supplements and being schlepped on the platform. Fuck, if Biden doesn't start doing better, we'll probably find out Pelosi has gone long.

I would look at the stock as a somewhat real time indicator of Donald Trumps chances in the 2024 election. If people think he's going to win, they should buy the stock. If they think he's going to lose, they should sell/ short the stock. And it may even be backwards from that, because of Trumps cash position and his legal entanglements. The more volatile/ lower the price goes, the less he's able to use it as leverage to increase his cash position. He may end up relying on that to continue to fund his legal battles and presidential campaigns.

Tldr: fundementals smundementals.

[–] Glowstick@lemmy.world 0 points 2 years ago* (last edited 2 years ago) (1 children)

I don't know much about stocks, but on every time span chart this stock looks like it's in total disaster mode

https://www.cnn.com/markets/stocks/djt

[–] TropicalDingdong@lemmy.world -1 points 2 years ago (1 children)

I mean if you were looking at META in November 2023, you would say the same thing right? It was down 75% from ATH. It was dropping WAY faster than Truth social has been. I mean the metaverse? C'mon.

Since then its run up 500%. Is meta 500% more valuable than it was 2 years ago?

AMD ran up from $2 in 2016 to $160 today. That's a 8000% increase. Did they start doing 80x the business?

Prices don't mean shit. Fundamentals don't mean shit. Nothing means anything. Its bullshit stacked on bullshit stacked on bullshit.There is no inherent meaning to price and value. Its all relative made up bullshit. Its not untrue to say that its all a fugazi. You just gotta appreciate that its all made up before you wade in.

[–] KevonLooney@lemm.ee 0 points 2 years ago (1 children)

I assume you're talking about November 2022, because Meta is only up 50% from November 2023. Meta was oversold in 2022 and was at prices not seen since 2015. Do you think Meta was a better company in 2022 than in 2015?

There was a general selloff in tech at the time. You can argue that some companies are overvalued now, but Meta in particular has a PE of 34. It's probably a bit expensive but it makes a lot of money every year. It's only issue now is how they can grow once everyone has a Facebook account.

[–] TropicalDingdong@lemmy.world -1 points 2 years ago* (last edited 2 years ago)

Like, its easy to come up with reasons why things happen after the fact.

You seem to have some decently strong belief that you know whats going on. How much money were you able to make off of Facebooks moves throughout that period?

My guess is you probably didn't make a bet. Or maybe you did. I'd be actually very interested to hear if you did one way or another. If you bet line go up, you were making a gamble. If you bet line go down, you were making a gamble. If your thesis only predicts the past, what am I supposed to do with it?

And thats my broader point. The rules are made up and the points don't matter. Its all a game of perception. Are valuations forward facing or are they based on fundamentals? Are fundamentals even relevant in a market this detached or should we really be focusing on Jensen Huangs leather jacket?

Teslas market cap is 512 B. Toyotas market cap is 395 B. Toyota is doing 250 B in revenue and Tesla is doing 20 B in revenue:

If valuations are forward facing, then what are the valuing? If the game was made sense, a simple slide ruler is all you would need to win the game.