Yes, the company went public. No, it is not a financial success—or even a lifeboat.
Debuting on the charts w/a “DJT” ticker, #TrumpMedia saw a 55% surge in valuation right after markets opened.
Huge influx of cash, right? w/Trump holding ~79M shares, equating to 58% of available stock, the #SPAC debut balloons his #NetWorth by nearly $5B; there were ~136M shares outstanding post-merger.
All these lackeys running the show means a lot of (feigned) confidence from folks in charge. + the most eager #shareholders aren’t in this for high returns, but to support their king…in their own words…in the #DWAC “groups” on #TruthSocial: “I’m holding & plan on being part of the greatest #SocialNetwork there is & support fmr & future President #Trump” (the anthem of the aforementioned retail-level #suckers.) This all means that $DJT is basically…the #political equivalent of a #MemeStock.
…both #TrumpMedia & #DWAC are facing 3 lawsuits, incl’g 1 from 2 #TruthSocial co-founders & fmr Apprentice contestants who allege #Trump purposefully stiffed them on a company stake. That #litigation isn’t going to die down in the midst of a #MemeStock craze.
By the end of Tues, the stock had dropped from its 55% surge down to 16% up from pre-market levels…it hasn’t returned anywhere near close to that peak…. people will keep on trading $DJT. It just isn’t going to help Trump anytime soon.
#TrumpMedia merger wins investor approval, netting #Trumppotential windfall
TFG will own ~60% of #TruthSocial, which at its current share price would be worth ~$3.3B.
A lockup agreement will prevent him from selling the shares for 6 months.
A long-delayed move that will open the owners of TruthSocial to stock-market investors & grant Trump a stake worth billions he could use to pay down his #legal#debts.
#Trump’s allies & company execs will also be granted bundles of shares in the new company that could be worth millions. But trading on the #stockmarket will also open the company to more public scrutiny, & any drops in share prices would affect the value of those stakes.
Critics have said #TrumpMedia is a “#MemeStock” w/a >$6B valuation they say is out of sync w/its financial outlook. TrumpMedia lost $49M in the first 9 months of last yr & brought in just $3.4M in revenue, per #DWA#SEC filing.
"Truth Social merger deal wins key approval, a victory ⁉️ for Trump"
Nice to know #truthsocial is ⭕not going to make #trump 4 billion USD if sold
"Truth Social gets a merger green light. A finance professor said Trump will get a windfall in “paper wealth … with the emphasis on ‘paper,’" because he suspects the hype around the money-losing company could die down by the time Trump can offload his shares. A Classic #memestock he said"