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.
Being untethered to reality is literally in the definition of stock trading. They have never represented anything but what dumbasses thought they could make off of it.
Coincidentally, being untethered to reality is the core mindset of the Truth Social user base.
It’s Texas Hold’em with extra steps.
They are degenerate gamblers.
Gambling, in my personal opinion, is one of the absolutely most tragic and devastating dependencies there are, and I would include meth abuse among them. At least meth heads tend to live past 40 or so. You get gambling debts and you will be fitted with lead boots in the harbor. I lost my best friend to it, and I’ve seen others on the same path. Drugs are nothing compared to what gambling does to the brain. It’s basically the same, only imagine a drug that you must take a new dose of every 0.82 seconds. Forever.
The shitty thing is, compared to drug addiction if you ODed usually you’re the only one who got injured. But with gambling debt, even if you’re already sleeping with the fishes, sometimes they still go after your family or business partners. That’s what basically happened to my friend, his business partner drowned in debt, stole money from their business ventures and ran away, he’s the one who must pay the debt because the dude promised he’ll pay back after their business is up and running.