It’s not. And a lot of people in the industry have pointed out that the valuation is pretty wildly decoupled from potential.
The most compelling argument I’ve heard is that it’s a lot of retail – small – investors who politically support Trump and have no idea what they’re doing buying into a complicated vehicle because Trump’s told them that he’s gonna make them rich. I remember some article a while back talking about the high proportion of retail investors.
Small investors power Trump Media’s market valuation above $13bn
Heavy trading in company behind Truth Social fuels talk of a new cycle of ‘meme stock mania’
Donald Trump’s Truth Social platform is riding a wave of enthusiasm from small investors as a second day of gains took the lossmaking social media group’s valuation above $13bn.
Trump Media & Technology Group topped the leaderboard of most-discussed stocks in WallStreetBets, Reddit’s popular stock trading forum, for several hours on Wednesday.
“Hate Trump but I knew his minions wouldn’t be able to help themselves the moment the ticker changed. Would’ve doubled down if I had any additional funds,” said WallStreetBets user FlapjackInProtest, who claimed he had turned $500 into $6,000 by trading TMTG options. Others reporting winning bets drew praise. WallStreetBets user optimal_burrito replied to someone who posted that buying Trump Media was their first winning trade with the message: “You’re gonna start winning so much you’ll get sick of it #DJT.”
Honestly, I think that there’s some argument that the SEC should do something about people getting burned like this, though I’m sure that if they did, Trump would go into another one of his spiels on being oppressed.
It’s not. And a lot of people in the industry have pointed out that the valuation is pretty wildly decoupled from potential.
The most compelling argument I’ve heard is that it’s a lot of retail – small – investors who politically support Trump and have no idea what they’re doing buying into a complicated vehicle because Trump’s told them that he’s gonna make them rich. I remember some article a while back talking about the high proportion of retail investors.
kagis for an example
https://www.ft.com/content/5fdd8a48-ce51-4e3b-b450-49fce86f37d9
Honestly, I think that there’s some argument that the SEC should do something about people getting burned like this, though I’m sure that if they did, Trump would go into another one of his spiels on being oppressed.