Less than a week ago, on April 2, I wrote about Trump Media & Technology Group’s disastrous 8-K filing with the Securities and Exchange Commission, which literally said the company that owns Truth Social couldn’t pay its bills. At the time, the company was worth $8.84 billion, with Donald Trump’s share valued at a whopping $5 billion.
But as I wrote then, Trump would never see that kind of money, and the week since hasn’t disappointed.
As I write this, TMTG—whose stock ticker is Trump’s initials, DJT—is down nearly 11% today, and down more than 23% in the past five days. The company’s market cap is now just under $5 billion, bringing Trump’s share to $2.8 billion, almost halved from its peak.
And to be very very clear, TMTG is worth nowhere near $5 billion. So how much might it actually be worth?
It’s not just that the company is unprofitable; many public (and private) companies are. It also generates almost no revenue, with just $3.252 million generated last year. The most generous possible valuation method would be the 10x multiple on revenues granted to fast-growing technology stocks. TMTG isn’t one of those, but even if it was, it would only be worth $32 million.
The average stock on the Nasdaq exchange trades at around five times its revenue, which would value the company at $16 million. Given that the company has floated 136.7 million shares, that would price each share at 12 cents. At a current price of $36 per share, there is plenty of room for further collapse.
Wall Street so desperately wants to “short” the stock—the (dubious) mechanism by which investors profit if a stock loses value—that the cost of borrowing shares to short is sky high. It doesn’t seem like anyone believes in this turd.
Kerry and Markos talk about Florida, its strict abortion ban, and Democratic challengers’ chances in the Sunshine State.