3 ms·

So like any other business with losses but good evaluation/stock performance? Like Amazon for most of its existence?

verdverm 3y ago
It's a bit different when you look at it compared to other social media companies https://www.axios.com/2024/03/27/truth-social-stock-facebook-twitter-ipo https://www.axios.com/2024/03/27/truth-social-stock-facebook... They are also in multiple lawsuits with the other two >5% holders They are also refusing to publish any statistics about the user base or engagement The 8-K filing with the SEC: https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=318203261&type=HTML&symbol=DJT&cdn=82e915bd8d9388f094efb599bc1b4a24&companyName=Trump+Media+%26+Technology+Group+Corp.&formType=8-K&formDescription=Current+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2024-04-01 https://app.quotemedia.com/data/downloadFiling?webmasterId=9... The SEC already fined them $18M and two brothers instrumental to the SPAC merger just plead guilty to insider trading https://www.reuters.com/business/media-telecom/investor-company-that-took-trump-media-public-pleads-guilty-insider-trading-2024-04-03/ https://www.reuters.com/business/media-telecom/investor-comp... --- The losses are less important than the paltry $4M in revenue. At that number, even with a 100x multiplier, the share price should be ... $400M / 136M (shares) ... or about $3 a share
- coldtea 3y ago
  >The losses are less important than the paltry $4M in revenue. Is it that different from the over-evaluation of companies with no real business plan aside from "capture eyeballs, get VC backing, and exit", or with big revenue and equally big losses, with net loss? The kind that lose $1 on each sale but "make it up on volume", which was the norm for VC-backed and IPOed companies from the dot-com boom to the recent "looking for unicorns" era. I'm with DHH on those...
  - verdverm 3y ago
    Yes, what you discuss happens, but $DJT is something different all together - most social media companies went public much later in their existence, with significant revenues, even with net losses - they have not been able to grow at the same pace that other social media companies have - they able unable to attract the new advertisers or users Consider Reddit went public around the same time, has/had roughly the same valuation range, but has 200x the revenue of truth social The fundamentals are just not there to support the current valuation. DJT is the most overvalued stock on the market right now, trading at over 1000X premium. Can you really see this platform growing to be the size of Twitter, Reddit, or Meta? It's really shady that they won't share user or engagement numbers like other companies in their industry

It's a bit different when you look at it compared to other social media companies https://www.axios.com/2024/03/27/truth-social-stock-facebook-twitter-ipo https://www.axios.com/2024/03/27/truth-social-stock-facebook... They are also in multiple lawsuits with the other two >5% holders They are also refusing to publish any statistics about the user base or engagement The 8-K filing with the SEC: https://app.quotemedia.com/data/downloadFiling?webmasterId=90423&ref=318203261&type=HTML&symbol=DJT&cdn=82e915bd8d9388f094efb599bc1b4a24&companyName=Trump+Media+%26+Technology+Group+Corp.&formType=8-K&formDescription=Current+report+pursuant+to+Section+13+or+15%28d%29&dateFiled=2024-04-01 https://app.quotemedia.com/data/downloadFiling?webmasterId=9... The SEC already fined them $18M and two brothers instrumental to the SPAC merger just plead guilty to insider trading https://www.reuters.com/business/media-telecom/investor-company-that-took-trump-media-public-pleads-guilty-insider-trading-2024-04-03/ https://www.reuters.com/business/media-telecom/investor-comp... --- The losses are less important than the paltry $4M in revenue. At that number, even with a 100x multiplier, the share price should be ... $400M / 136M (shares) ... or about $3 a share

coldtea 3y ago
>The losses are less important than the paltry $4M in revenue. Is it that different from the over-evaluation of companies with no real business plan aside from "capture eyeballs, get VC backing, and exit", or with big revenue and equally big losses, with net loss? The kind that lose $1 on each sale but "make it up on volume", which was the norm for VC-backed and IPOed companies from the dot-com boom to the recent "looking for unicorns" era. I'm with DHH on those...
- verdverm 3y ago
  Yes, what you discuss happens, but $DJT is something different all together - most social media companies went public much later in their existence, with significant revenues, even with net losses - they have not been able to grow at the same pace that other social media companies have - they able unable to attract the new advertisers or users Consider Reddit went public around the same time, has/had roughly the same valuation range, but has 200x the revenue of truth social The fundamentals are just not there to support the current valuation. DJT is the most overvalued stock on the market right now, trading at over 1000X premium. Can you really see this platform growing to be the size of Twitter, Reddit, or Meta? It's really shady that they won't share user or engagement numbers like other companies in their industry