Truth Social losses $300M on Q1
variety.com
variety.com
The punch line is less than $1mm of quarterly revenue.
[1] https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/0...
Anyone looking at the SEC filings to see whose promissory notes?
It's probably a lie, for tax purposes. The fake loss can offset some real gain elsewhere.
Bingo
And there are people buying this stock.
It’s closer to an NFT. He doesn’t directly benefit from holders; there are more direct ways to enrich him, e.g. loans.
Not how secondary markets work.
The people buying shares on the stock exchange are not buying them from Trump. They are not buying them from Truth Social. Trying to bribe Trump by buying DJT on the open market is beyond bone-headed dumb.
Same way a pump-and-dump works, but the "victims" (who've already run similar plays; https://www.nytimes.com/2022/04/10/us/jared-kushner-saudi-in...) don't even mind losing the money.
You’re describing a pump without the dump. There are a lot of reasons this is invalid. Please take it from a professional in this space for decades that your hypothesis is testably false. Even if it did transfer wealth to the Trumps, it wouldn’t do so definitively, and so be diluted in leverage in comparison with a smaller, more direct measure.
As a professional in the space, help me understand. What prevents the Saudis from offering $10-20B to take $DJT private by buying out all the shareholders?
(Like Musk’s $420 tweet that got him SEC minders, but real.)
Seriously though, it would be hilarious to see this fail as Truth Social is based[0] on Mastodon. It would be hilarious to see the free market guy go bankrupt again while the thing they stole from keeps trudging along funded by donations.
Do you think that? Because if you do I want to point out that donations are one of the ultimate expressions of the free market. The open source ecosystem is in fact the most extreme free market we have available in the world today. It is basically peak capitalism, and a go-to example for how an unregulated free market can generate unbelievable amounts of value (who seriously believed in the 90s that the price of software could naturally drop to $0?).
Free software existed in the 90s and the most important free software ever made, the web, came out of a state funded institution.
Open source software is in a market but markets predate capitalism by thousands of years and are part of a variety or political and economic systems most notably communism (and no the USSR cannot be used as an example of communism in action, the first thing that Lenin did was dissolve the Soviets).
Finally open source is highly regulated. Try posting source code someone claims copyright on. Or is deemed illegal. There have been unregulated markets in history. Open source just isn’t one of them.
Yeah, governments can do fundamental research fine. Nobody has any idea what is going on in fundamental research, so the government can't be at a disadvantage by being disorganised.
Where an idea comes from doesn't matter. Anyone can have a good idea, even the insane.
> Finally open source is highly regulated.
There isn't any inconsistency between free markets and regulation. Nearly all free markets have to be regulated at some level. Contracts need to be honoured so that people can make deals over time - otherwise it is just a barter system (the only possible theoretically unregulated free market! Even then not a guarentee). There isn't any point giving up products like insurance in the aid of some sort of technical purity.
When people say "deregulate" there is an implied "of regulations I don't agree with". Obviously everyone favours some level of regulation - although the useful level is so far away from where the typical legislative framework lives it is the same thing as calling for no regulation for average debate. People are difficult to dissuaded from putting dictators in charge - it is the naive response to every challenge - and they end up in the regulatory bodies.
> and no the USSR cannot be used as an example of communism in action, the first thing that Lenin did was dissolve the Soviets
You aren't wrong, but the fatal flaw of communism is that there isn't a theoretical way to keep power with the soviets without devolving back to capitalism. Powerful people end up with control of the capital. The only fundamental difference is that capitalism demands powerful people at least, y'know, build and maintain the capital and replaces them if they don't. Communism, when the powerful people didn't properly tend to capital, didn't replace the owning class and people starved.
Grifters gonna grift...
Facebook didn't monetize until 5 years in, YouTube didn't really ramp up ads until at least 5 years in either. And it bled money for at least a decade. Snapchat also 4 years or so before monetization became a focus. WhatsApp barely had any revenue when it was purchased for $19B.
I'm not saying Truth Social is in the same caliber at all as the above companies, but inflated tech valuations happen every single cycle (see WeWork). There's over 1200 private startups right now with a valuation over $1B, many of which have low revenue: https://www.cbinsights.com/research-unicorn-companies
1. Meme stock
2. The cult believing Jeezus wants them to buy this stock
3. The most logical IMO, folks believing that if Trump wins the presidency that everyone who wants a pardon or some other government favor will start buying a shitload of Truth Social ads.
-Market Cap: 9.95B
-Revenue (ttm): -146.20M
-P/S Ratio: n/a (negative)
-Forward P/S: 2.32
-Company Type: Mortgage REIT
https://stockanalysis.com/stocks/nly/How can revenue (not to be confused with net income or profit) be negative?
-Market Cap: 4.80B
-Revenue (ttm): 302,000
-P/S Ratio: 15,892
-Forward P/S 161
https://stockanalysis.com/stocks/ibrx/Stunningly high price to sales ratio.
-Market Cap: 7.89B
-Revenue (ttm): 2.59M
-PS Ratio: 3,042.45
-Forward PS: Unknown
-PB Ratio: 37.52
https://stockanalysis.com/stocks/djt/For comparison.
Tbh, with Twitter owned by Elon, the existence of Truth Social is not really needed anymore.
If I were investigating, I’d be looking at ways people could prove to Trump that they actually bought (and held) the shares.
https://www.google.com/amp/s/www.cnbc.com/amp/2024/05/08/ube...
But while Truth Social is on it's way to being delisted, today I learned a valuable lesson: don't make the stock symbol your initials. Someone is not going to be pleased when "DJT" is a penny stock trading OTC.
Oligarchs who can’t otherwise send Trump billions in campaign contributions. Bid it up, let him sell, and suddenly he owes the bonesaw and polonium people a big favor.
The appeal's likely failure is part of why getting to the end of the Truth Social lockup period is so critical to Trump. Anything he can do to delay until then, he will.
Plenty of Trump's properties are within NY; the AG was ready and poised to start seizing. Hard to move Trump Tower out of NYC without someone noticing.
Probably a mix of true believers (“Trumpism is a cult!” is basically a meme but also contains a kernel of truth) and rich folks looking to make a “donation” to Trump without directly doing so.
It’s like how Trump’s hotel in DC was constantly packed until the day he lost the presidency. If you were a foreign dignitary, walked into the Oval Office and tried to give Trump a suitcase of cash… well, that would be bad. But if you walked in and said “Mr. Trump! My staff and I have been enjoying our stay in the luxury suites of your hotel” then that’s just innocent conversation about how you recently transferred some money into his pockets!
1. They believe Trump is the second coming of Christ and so it is their duty, OR
2. They want to "donate" to him/his campaign and get favors in return down the line, OR
3. They anticipate it will go up because of 1 & 2 (and so are themselves pushing the price up even higher)
https://www.cbsnews.com/news/trump-media-nasdaq-naked-short-...
SPAC promoters are harsh mistresses.
Hopefully Trump can get to the dumping of his shares soon, DJT share price has recovered from its lows.