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Trump’s media stock plunges after posting a big loss for 2023

  

Category:  News & Politics

Via:  krishna  •  3 weeks ago  •  9 comments

By:   By Matt Egan

Trump’s media stock plunges after posting a big loss for 2023
Losses are so severe that Trump Media’s accountants warned they “raise substantial doubt about its ability to continue as a going concern.

(This is not my photo).

Photo credit: EA Worldview


S E E D E D   C O N T E N T


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.

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.

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. 


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Krishna
Professor Expert
1  seeder  Krishna    3 weeks ago

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.

 
 
 
Krishna
Professor Expert
2  seeder  Krishna    3 weeks ago

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.

 
 
 
Krishna
Professor Expert
3  seeder  Krishna    3 weeks ago

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. 

 
 
 
afrayedknot
Junior Quiet
3.1  afrayedknot  replied to  Krishna @3    3 weeks ago

“…they “raise substantial doubt about its ability to continue as a going concern,”…

…and hopefully we can expect his political future will have a similar outcome. Substance over symbolism, fact over fiction, reality over emotion…

Let him become a martyr to his sycophants, but let history dictate just how deleterious, just how divisive, and just how dangerous his words, actions, and intentions were. 

 
 
 
TᵢG
Professor Principal
4  TᵢG    3 weeks ago

I guess we now know a good time to short the stock:   last Thursday.   Happened quicker than I thought it would.

Well, there is always the chance that more irrationally exuberant Trump supporters will invest their little money in DJT and push it back up to give another shot for the short sellers.

Then again, there will be plenty of opportunities to benefit from shorting this loser stock because its fundamentals and performance is not going to magically improve prior to the election.   If Trump loses, this stock might be delisted.

 
 
 
Krishna
Professor Expert
4.1  seeder  Krishna  replied to  TᵢG @4    3 weeks ago
I guess we now know a good time to short the stock:

Maybe. Only if you think it has significant more downside (which it might).

Ideally the best time to short it was before today, when it was much higher. 

But it probably has more  downside...(?)

To risky for me-- I was tempted to short it last week, but I generally go for safer investments....

 
 
 
TᵢG
Professor Principal
4.1.1  TᵢG  replied to  Krishna @4.1    3 weeks ago
Ideally the best time to short it was before today, when it was much higher. 

Yes, last Thursday.

To risky for me ...

Same here, this is a crazy, emotional stock.

 
 
 
Krishna
Professor Expert
4.2  seeder  Krishna  replied to  TᵢG @4    3 weeks ago
Well, there is always the chance that more irrationally exuberant Trump supporters will invest their little money in DJT and push it back up to give another shot for the short sellers.

That's a fairly strong possibility-- but again, its to risky for me. (I rarely if ever short stocks-- I go for safer stuff, although I have taken some big risks in the past.

 
 
 
TᵢG
Professor Principal
4.2.1  TᵢG  replied to  Krishna @4.2    3 weeks ago

Same here, I like to invest in companies rather than against them.

My interest here is the bizarre nature of this stock and that of Trump and his supporters.   This stock is strangely tied to Trump's popularity and viability as the next PotUS.   It is subject to some major changes this year since its value is emotional and clearly not based on fundamentals or on the future based on its business model.

 
 

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