Truth Social going public net Trump estimated 2 to 4 BILLION

[Mike M (the other one)]

(04-01-2024, 01:12 PM)pally Wrote: Truth Social released its first financial reports today....

In 2023 they generated $4.1 million in revenue with only $750,000 in the 4th QTR which means business is getting worse

They LOST  $58 MILLION

Any financial experts want to explain how this company is worth $4-6 billion?

Oh no, hurry up and log in and check on you boi DJT!

[GMDino]

(04-01-2024, 01:49 PM)Mike M (the other one) Wrote: Oh no, hurry up and log in and check on you boi DJT!

Since you asked I went and checked.

He's currently posting about a new poll that shows he would beat...checks notes...Michelle Obama.

Who isn't running.

[Luvnit2]

(04-01-2024, 01:12 PM)pally Wrote: Truth Social released its first financial reports today....

In 2023 they generated $4.1 million in revenue with only $750,000 in the 4th QTR which means business is getting worse

They LOST  $58 MILLION

Any financial experts want to explain how this company is worth $4-6 billion?

I suggest you post the financials you have referenced, then I suggest you educate your yourself on stock and IPO values. 

You are assuming investors are stupid, they are not. They are way smarter than you and me. 

I know you could care less about any other stock but are fixated due to TDS on this one. It is worth more than 4-6 billion, Trump only 58% and has an estimated value of $4.1 billion, so closer to 7.3 billion. 

You also don't do any research on the SEC and use Democratic talking points. Trump did not prepare or release this company's financials. He is shareholder of the company; he is not the company. 

[GMDino]

(04-01-2024, 03:36 PM)Luvnit2 Wrote: I suggest you post the financials you have referenced, then I suggest you educate your yourself on stock and IPO values. 

You are assuming investors are stupid, they are not. They are way smarter than you and me. 

I know you could care less about any other stock but are fixated due to TDS on this one. It is worth more than 4-6 billion, Trump only 58% and has an estimated value of $4.1 billion, so closer to 7.3 billion. 

You also don't do any research on the SEC and use Democratic talking points. Trump did not prepare or release this company's financials. He is shareholder of the company; he is not the company. 

Stock is down 24% since the release of those numbers.  Maybe they are smart.

https://www.cnn.com/2024/04/01/media/truth-social-trump-media-stock-losses/index.html

Quote:New YorkCNN — 

Shares of Truth Social owner Trump Media & Technology Group plunged Monday after the company disclosed that it lost more than $58 million and generated very little revenue in 2023.


The figures underscore why some experts warn Trump Media’s multibillion-dollar valuation defies logic and is reminiscent of the meme stock craze.


In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.

The Truth Social owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.


Not only that, but revenue tumbled 39% year-over-year in the fourth quarter to just $751,500. That’s not what investors want to see from any start-up, especially one valued at these levels.


Shares of Trump Media tumbled 24% Monday afternoon following the new filings, though they are still up nearly 200% so far this year.


The losses are so severe that Trump Media’s accountants warned they “raise substantial doubt about its ability to continue as a going concern,” which is Wall Street for: We may not be able to stay in business. That warning echoes one made in November when accountants said Trump Media might not survive unless it soon completes its merger to go public.


That long-delayed deal was completed last week, paving the way for Trump Media to receive an influx of approximately $300 million in cash. The company can now use those funds to pay down debt and, importantly, build out its infrastructure.


“I believe the $300 million of cash should remove this ‘going concern’ risk,” said Matthew Kennedy, senior IPO strategist at Renaissance Capital.


Even though Trump Media is losing money and generating scant revenue, Wall Street has valued the company by as much as $11 billion based on the stock’s closing price Friday, according to Renaissance Capital.


While Trump Media made just $4.1 million in revenue in 2023, rival X (formerly known as Twitter) raked in more than 100 times that much — $665 million — in 2013, ahead of its initial public offering in November 2013. Twitter also generated just over $5 billion in revenue in the final year before it was taken private by Elon Musk.


The problem for Trump Media is its main product — Truth Social — is shrinking.


Monthly active US users on iOS and Android plunged in February to 494,000, down 51% year-over-year, according to Similarweb. By comparison, X has 75 million monthly active US users. Even Threads has more than 10 times as many users as Truth Social, according to Similarweb.



“2024 is the make-or-break year for this company,” said Kennedy. “For TMTG the thing that matters now is getting in front of the cash cannon that is the 2024 presidential election. And the company does have one notable advantage. Trump-backed super PACs have raised millions. Where do you think they’ll spend their digital ad buckets?”

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/000114036124016719/ef20025342_8k.htm

They seem to be banking on advertisers flocking there during the election.  But with a declining user base what happens after the election?  Win or lose?

Seems risky.

If Trump isn't the company why does it have his name on it and why does own a majority stake in it?

[*pally*]

(04-01-2024, 03:36 PM)Luvnit2 Wrote: I suggest you post the financials you have referenced, then I suggest you educate your yourself on stock and IPO values. 

You are assuming investors are stupid, they are not. They are way smarter than you and me. 

I know you could care less about any other stock but are fixated due to TDS on this one. It is worth more than 4-6 billion, Trump only 58% and has an estimated value of $4.1 billion, so closer to 7.3 billion. 

You also don't do any research on the SEC and use Democratic talking points. Trump did not prepare or release this company's financials. He is shareholder of the company; he is not the company. 

did I not specifically ask for financial experts to explain why this company is worth so much with horrific financials?  YOU were the one posting about how much money Trump could make not me.  


This company is broke (so much for the Midas Touch) with declining revenues.  How can it be legitimately worth that much?  Seriously I want to understand

[*Nately120*]

Trump pumping and dumping this and keeping all the money for himself is the most big-dick, alpha male, smart capitalist move there is. Why anyone who admires the guy wouldn't know he's going to do that is beyond me.

[Mike M (the other one)]

(04-01-2024, 03:24 PM)GMDino Wrote: Since you asked I went and checked.

He's currently posting about a new poll that shows he would beat...checks notes...Michelle Obama.

Who isn't running.

Well duh. and not quite the epic meltdown i was expecting. Guess you'll have to stay tuned for that one

[Mike M (the other one)]

(04-01-2024, 04:26 PM)pally Wrote: did I not specifically ask for financial experts to explain why this company is worth so much with horrific financials?  YOU were the one posting about how much money Trump could make not me.  


This company is broke (so much for the Midas Touch) with declining revenues.  How can it be legitimately worth that much?  Seriously I want to understand

I'm no expert by any means, but don't judge a stock by one quarter. You have to use the Full Fiscal Year. 
Many stocks report a negative for a quarter. Various reasons, expanding to prepare for expected future growth, building up stock for xmas season etc. 

You'd have to actually have someone look at the reported numbers for Q4 to have an idea why the lost money.

but 58m vs the B's they are worth isn't alot. 

It's a newer stock now and really hasn't normalized.

[*pally*]

(04-01-2024, 06:41 PM)Mike M (the other one) Wrote: I'm no expert by any means, but don't judge a stock by one quarter. You have to use the Full Fiscal Year. 
Many stocks report a negative for a quarter. Various reasons, expanding to prepare for expected future growth, building up stock for xmas season etc. 

You'd have to actually have someone look at the reported numbers for Q4 to have an idea why the lost money.

but 58m vs the B's they are worth isn't alot. 

It's a newer stock now and really hasn't normalized.

these were full year 2023 results

[Goalpost]

There are plenty of companies listed that are not profitable. A good example would be Uber which just became profitable after many years.

Uber Technologies Annual EPS
2023 $0.87
2022 $-4.65
2021 $-0.29
2020 $-3.86
2019 $-6.81
2018 $2.08
2017 $-9.46
2016 $-0.90

Snowflake has a 53 billion dollar market cap, makes no money, and is priced at $160 per share.
MongoDB makes no money and prices at $356 per share.

It's all based on a business plan where investors are patient to wait for profit.

[Mike M (the other one)]

(04-01-2024, 06:46 PM)pally Wrote: these were full year 2023 results

Ok I'm not seeing it. His assets to start the year is 311m.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/000114036124017011/ef20025355_10k.htm

Looks like most of the losses is coming from the stock side. 


Sorry, it's been 15+ years since i tracked my company's competitors and prepared reports for the board.

Maybe Bels can make some heads/tails of the sheets. 

[Luvnit2]

(04-01-2024, 03:54 PM)GMDino Wrote: Stock is down 24% since the release of those numbers.  Maybe they are smart.

https://www.cnn.com/2024/04/01/media/truth-social-trump-media-stock-losses/index.html



https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/000114036124016719/ef20025342_8k.htm

They seem to be banking on advertisers flocking there during the election.  But with a declining user base what happens after the election?  Win or lose?

Seems risky.

If Trump isn't the company why does it have his name on it and why does own a majority stake in it?

No maybe, they are smart. They go out of business if they pick losers. 

[Belsnickel]

(04-01-2024, 07:42 PM)Mike M (the other one) Wrote: Ok I'm not seeing it. His assets to start the year is 311m.

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/000114036124017011/ef20025355_10k.htm

Looks like most of the losses is coming from the stock side. 


Sorry, it's been 15+ years since i tracked my company's competitors and prepared reports for the board.

Maybe Bels can make some heads/tails of the sheets. 

Statement of operations shows a net loss post-tax of ~$22 million and ~16 million in 2023 and 2022 respectively. The mention of common stock you see there is in relation to the distribution of that loss among the share of stock. So what that statement says is that if you spread out the losses the company incurred in those years among the shareholders equally, that is the amount it devalued their shares.

What was interesting to me was the cash flows. They had a little under $400k in cash and cash-equivalents at the end of FY23 and in FY22 they ended with $989. It seems like they are being propped up by financing activities (i.e. loans) because cash flows from operations were losses of $1.5 million in 2022 and $5.1 million in 2023. Now, with the completion of the merger the company gains access to the funds raised from DWAC's IPO, which is an amount of cash that has been sitting in trust to the tune of over $300 million (this is where the bulk of the assets were locked up contingent on the acquisition). This will help with the company's liquidity for a time, but with the losses year-on-year we are seeing it won't last long.

[GMDino]

This accounts for a lot of the stock's price.

https://www.reuters.com/markets/us/trump-and-dump-speculators-bet-truth-social-meme-stock-2024-04-02/

Quote:Trump-and-dump: Speculators bet on Truth Social 'meme' stock
By Abigail Summerville
April 2, 20246:04 AM EDTUpdated 3 hours ago









The Truth social network logo is seen on a smartphone in front of a display of former U.S. President Donald Trump in this picture illustration taken February 21, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab

April 2 (Reuters) - Mohammed Al Shalloudi, a 21-year-old graduate data analyst in the United Arab Emirates who invested in Donald Trump's social media company, has little in common with the former U.S. president's political supporters.

Al Shalloudi bought shares in Trump Media and Technology Group (TMTG) (DJT.O), opens new tab, but not because he believes in the business of its app Truth Social or because he is a Trump fan. He is part of an army of speculators seeking a quick lucrative trade whose bets on TMTG have made it one of the most overvalued and actively traded U.S. stocks.

Al Shalloudi said he bought at $37 per share and cashed out late last week at $65 per share, clinching a 76% return on his $4,000 investment in just a few days. TMTG's stock closed on Monday at $48.66 after listing on Nasdaq last week in a deal that valued it at just $10 per share.

“It was a no-brainer. You buy the stock, wait for Trump's fan base to hear about it, and enjoy your profit,” Al Shalloudi said.

Reuters interviews with more than a dozen investors that posted about their positions on social media platforms such as Reddit (RDDT.N), opens new tab and X found that most were looking to score a quick profit.

They bet that Trump supporters' fascination with the stock was untethering TMTG's stock price from the company's business fundamentals.

TMTG's current valuation of approximately $6.6 billion is equivalent to about 1,600 times the loss-making company's revenue in 2023 of $4.1 million, according to LSEG data.


No other U.S. company of similar market capitalization has such a high valuation multiple, the LSEG data shows. This is despite TMTG warning investors in regulatory filings that its operational losses raise "substantial doubt" about its ability to remain in business.

The stock is also among the most actively traded, according to Trade Alert data. While social media posts indicate some Trump supporters have bought TMTG shares, a lot of the trading volume is coming from speculators looking for a quick flip.

“I invested $10,000 last Tuesday because MAGA is crazy and they will pump the stock,” said Sarah, a 21-year-old software developer from Pennsylvania who asked for her last name not to be published. MAGA stands for Trump's campaign slogan, 'Make America Great Again'.

The appeal of TMTG to speculators helps explain the stock's volatility. The shares have risen as much as fivefold in the last two months and are currently valuing Trump's majority stake in the company at about $3.8 billion.

A bout of this volatility came on Monday, as the stock lost more than fifth of its value. It remained unclear whether hedge funds and other Wall Street firms will get comfortable with such risks to join the speculation. Big investment firms will be required in a few weeks to disclose what, if any, their position in TMTG was as of the end of March.

Reuters Graphics
Most rallies of stocks that trade based on hype among individual investors -- so-called 'meme' stocks such as GameStop (GME.N), opens new tab and AMC Entertainment (AMC.N), opens new tab -- have fizzled after a few weeks or months. Trump is not allowed to sell or borrow against his TMTG stake for six months, so the rally must last at least that long if he is to capitalize on the euphoria by cashing out.

A TMTG spokesperson did not respond to a request for comment on the impact speculators are having on the company's market value.

MOTHER OF ALL MEME STOCKS
James Angel, an associate finance professor at Georgetown's McDonough School of Business, said it would be risky to predict when TMTG's valuation will drop to more accurately reflect its business prospects.

"Eventually the meme stock entertainment will wear off... But it may take a very long time for the market to correct or a very short time," Angel said.

Julian Klymochko, CEO of Accelerate, a manager of exchange-traded funds that has not invested in TMTG, called it the "mother of all meme stocks" and said it was hard to envisage it attracting long-term investors.

"I think the investors here are either speculators or amateurs just looking to make a quick buck in a highly volatile stock, and there are really no fundamental underpinnings," Klymochko said.

[GMDino]

Also I just saw this that confirms Trump cannot sell his stock for six months.

https://www.npr.org/2024/04/01/1242085620/trump-social-media-stock-djt-truth-social

Quote:Trump's social media stock tumbles, erasing early gains
APRIL 1, 20244:26 PM ET

Scott Horsley


Stock in the parent company of Donald Trump's social media company fizzled on Monday, reversing last week's big gains.
Michael M. Santiago/Getty Images
Stock in the parent company of former president Donald Trump's social media platform fell sharply on Monday, erasing last week's market gains and shaving more than a billion dollars off the value of Trump's stake.


The drop came after a regulatory filing, in which the company — ticker symbol DJT — reported losing $58 million last year, on revenues of just over $4 million.

The platform, Truth Social, which Trump started after being kicked off Twitter (now known as X), has far fewer users than other social media outlets. And its heavy dependence on Trump's own posts make it vulnerable.

"The value of [Trump Media and Technology Group's] brand may diminish if the popularity of President Trump were to suffer," the company said in its filing. "To the extent users prefer a platform that is not associated with President Trump, TMTG's ability to attract users may decrease."

Despite Truth Social's financial losses, Trump loyalists eagerly snapped up shares in the parent company when trading began last week. The stock jumped more than 30% in its first two days on the market, making Trump's shares worth more than $5.2 billion.

That early enthusiasm didn't last. The stock fell more than 6% last Thursday and another 21% on Monday, reducing the value of the former president's stake to $3.8 billion.

That reduced sum could still come in handy for Trump, as he battles legal challenges and must post a bond of $175 million this week while appealing a civil fraud judgment in New York.

Trump can't sell his stock any time soon, though. Monday's filing confirmed that he and other insiders are barred from selling their shares for six months.

Over one million dollars in value lost in two days.

[*Nately120*]

(04-02-2024, 10:35 AM)GMDino Wrote: Also I just saw this that confirms Trump cannot sell his stock for six months.

I mean this with more humor than as a shot at you, but I'm amused you are going to post that Trump cannot sell this stock and then spend the rest of the day posting about how Trump constantly gets away with illegal stuff.  Trump is going to pump and dump harder than Roy Munson's landlady and then once his supporters lose money on this he's gonna say "Joe Biden sabotaged this stock and made you lose all your money" and they'll swallow the hook yet again.

[GMDino]

(04-02-2024, 11:21 AM)Nately120 Wrote: I mean this with more humor than as a shot at you, but I'm amused you are going to post that Trump cannot sell this stock and then spend the rest of the day posting about how Trump constantly gets away with illegal stuff.  Trump is going to pump and dump harder than Roy Munson's landlady and then once his supporters lose money on this he's gonna say "Joe Biden sabotaged this stock and made you lose all your money" and they'll swallow the hook yet again.

Ha!  Yeah the "he never gets caught" has been heavy lately while his supporters also say everything is "unfair" that happens to him...but I get your point.

I guess my only guess would be that the SEC is watching verrryyyy closely to see what he does.

[Goalpost]

I must admit some humor in this.

GameStop as a meme was popular to many when it went up. Because that was hurting the professionals who were shorting it.

But the same people in here now cheer that Trump's stock goes down.

Gotta love the consistency.

[GMDino]

(04-02-2024, 12:22 PM)Goalpost Wrote: I must admit some humor in this.

GameStop as a meme was popular to many when it went up.  Because that was hurting the professionals who were shorting it.

But the same people in here now cheer that Trump's stock goes down.  

Gotta love the consistency.

Eh, not cheering it going down.  Sane people know why it was so high, I shared a story about it above.  Just curious how the career grifter and fraud will get away with it this time...lol.

[Belsnickel]

(04-02-2024, 12:22 PM)Goalpost Wrote: I must admit some humor in this.

GameStop as a meme was popular to many when it went up. Because that was hurting the professionals who were shorting it.

But the same people in here now cheer that Trump's stock goes down.

Gotta love the consistency.

I take pleasure in people with money losing money because of stupid decisions. I especially love it when the mechanisms of the stock market do it because I just dislike the stock market in general.