{"id":616805,"date":"2024-04-13T14:07:22","date_gmt":"2024-04-13T11:07:22","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/trump-stock-tumbles-after-buoyant-debut\/"},"modified":"2024-04-13T14:07:22","modified_gmt":"2024-04-13T11:07:22","slug":"trump-stock-tumbles-after-buoyant-debut","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/trump-stock-tumbles-after-buoyant-debut\/","title":{"rendered":"#Trump stock tumbles after buoyant debut"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_89 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6af47da094b61\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6af47da094b61\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/trump-stock-tumbles-after-buoyant-debut\/#True_believers\" >True believers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/trump-stock-tumbles-after-buoyant-debut\/#Bet_on_2nd_term\" >Bet on 2nd term?<\/a><\/li><\/ul><\/nav><\/div>\n<div>\n<div class=\"article-gallery lightGallery\">\n<div data-thumb=\"https:\/\/scx1.b-cdn.net\/csz\/news\/tmb\/2024\/donald-trump-still-sta.jpg\" data-src=\"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/donald-trump-still-sta.jpg\" data-sub-html=\"Donald Trump still stands to make plenty of money with the listing of his media group, which owns the app Truth Social.\">\n<figure class=\"article-img\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/scx1.b-cdn.net\/csz\/news\/800a\/2024\/donald-trump-still-sta.jpg\" alt=\"Donald Trump still stands to make plenty of money with the listing of his media group, which owns the app Truth Social\" title=\"Donald Trump still stands to make plenty of money with the listing of his media group, which owns the app Truth Social.\" width=\"800\" height=\"525\"\/><figcaption class=\"text-darken text-low-up text-truncate-js text-truncate mt-3\">\n                Donald Trump still stands to make plenty of money with the listing of his media group, which owns the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a> Truth <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Social<\/a>.<br \/>\n            <\/figcaption><\/figure>\n<\/div>\n<\/div>\n<p>After a winning debut on Wall Street last month, Donald Trump&#8217;s media group has suffered a bruising retreat, denting the Republican candidate&#8217;s wealth as he faces legal challenges.<\/p>\n<p>                                                                                                                                    Since entering public markets on March 26, Trump Media and <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">Technology<\/a> Group has seen its market value plummet from around $11 billion to under $4.5 billion.<\/p>\n<p>That&#8217;s an unhappy reversal for the former White House inhabitant and current presidential candidate, who faces around a half billion dollars in civil court judgments if his appeals are unsuccessful.<\/p>\n<p>Trump holds 57.3 percent of the company, which was successfully merged into a shell company known as Digital World Acquisition last month; equity owners in such transactions are typically required to hold the stock for six months before cashing out.<\/p>\n<p>TMTG&#8217;s ticker is &#8220;DJT,&#8221; Trump&#8217;s initials. The company&#8217;s principal asset is &#8220;Truth Social,&#8221; the social media platform launched for the ex-president after he was kicked off Twitter and Facebook in 2021 in the wake of the January 6 attack on the US Capitol.<\/p>\n<p>Market watchers aren&#8217;t quite sure what to make of the stock&#8217;s trajectory.<\/p>\n<p>&#8220;Nothing would surprise me about this stock&#8217;s trading,&#8221; said Matthew Kennedy, senior IPO Market strategist at Renaissance Capital. &#8220;It could jump to $100 or drop to $1 and I would be unfazed.&#8221;<\/p>\n<p>Though far below its peak valuation, TMTG&#8217;s stock price is an anomaly in the sense that the company generated just $4 million in revenues in 2023 and lost $58 million, according to a securities filing.<\/p>\n<p>&#8220;I can&#8217;t think of any companies that currently have such a wide gap between revenue and market cap,&#8221; Kennedy said.<\/p>\n<p>To justify such a valuation, a company would normally be expected to produce significant growth and profitability in the near-future\u2014scenarios that are considered highly unlikely, if not impossible.<\/p>\n<p>&#8220;It&#8217;s very hard to tell any story that could justify a valuation, at today&#8217;s price,&#8221; said Jay Ritter, a finance professor at the University of Florida.<\/p>\n<p>&#8220;There&#8217;s just no plausible story where that&#8217;s going to be happening,&#8221; Ritter said. &#8220;The media business has been on the decline. And with this company being so closely aligned with Donald Trump, he&#8217;s not going to live forever.&#8221;<\/p>\n<p>                                                                                                        <!-- TechX - News - In-article --><\/p>\n<h2><span class=\"ez-toc-section\" id=\"True_believers\"><\/span>True believers<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Even so, TMTG maintains a valuation above a group of established companies that includes Goodyear and Shake Shack, a phenomenon market watchers struggle to explain.<\/p>\n<p>&#8220;I&#8217;d say this is a meme stock,&#8221; said Kennedy, alluding to <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">Game<\/a>Stop and a handful of other equities that caught fire in early 2021 after being embraced by users of the Reddit platform.<\/p>\n<p>&#8220;It&#8217;s a combination of some short-term speculators, but &#8230; there&#8217;s also a committed number of retail investors who wanted to believe in the company, believe in the stock and weren&#8217;t paying attention to valuations,&#8221; Ritter said of the meme stock group, which also included movie theater chain AMC.<\/p>\n<p>With speculators, the play is to benefit from a short-term positive move before selling and cashing out the gains.<\/p>\n<p>Expecting &#8220;lots of volatility,&#8221; one anonymous investor who bought low said on Reddit he &#8220;took those profits and rolled them into put options, because of how overvalued the stock was.&#8221;<\/p>\n<p>Some investors likely sold out after TMTG&#8217;s securities filing revealed the paltry revenues. Others may fear a sudden sale by Trump of a huge number of shares to raise money.<\/p>\n<p>But some holders are &#8220;buying with an ideological motivation where they wanted to show support,&#8221; Ritter said.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Bet_on_2nd_term\"><\/span>Bet on 2nd term?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Most of the commentators on Reddit have come out swinging against TMTG.<\/p>\n<p>&#8220;My dad says he wanted to buy into this for the long-term stability of his grandchildren, and I just had to laugh,&#8221; said one person on Reddit<\/p>\n<p>Kennedy calls TMTG a &#8220;unique stock&#8221; and sees one scenario where the investment could take off.<\/p>\n<p>&#8220;While voters may have concerns over conflicts of interest, shareholders of DJT would no doubt benefit from a second Trump term, especially if he continues to use it as his official platform,&#8221; Kennedy said.<\/p>\n<p>&#8220;In fact, in a recent client note we called this stock a multi-billion dollar bet on a second Trump term.&#8221;<\/p>\n<p class=\"article-main__note mt-4\">\n                                                \u00a9 2024 AFP\n                                            <\/p>\n<p>                                        <!-- print only --><\/p>\n<div class=\"d-none d-print-block\">\n<p>                                                <strong>Citation<\/strong>:<br \/>\n                                                Market correction: Trump stock tumbles after buoyant debut (2024, April 13)<br \/>\n                                                retrieved 14 April 2024<br \/>\n                                                from https:\/\/techxplore.com\/<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">news<\/a>\/2024-04-trump-stock-buoyant-debut.html<\/p>\n<p>                                            This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no<br \/>\n                                            part may be reproduced without the written permission. The content is provided for information purposes only.<\/p><\/div>\n<\/p><\/div>\n<p><script id=\"facebook-jssdk\" async=\"\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMN63nwsw68G3Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more Like this articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/science\/\" target=\"_blank\" rel=\"noopener\">Science category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/techxplore.com\/news\/2024-04-trump-stock-buoyant-debut.html\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Donald Trump still stands to make plenty of money with the listing of his media group, which owns the app Truth Social. After a winning debut on Wall Street last month, Donald Trump&#8217;s media group has suffered a bruising retreat, denting the Republican candidate&#8217;s wealth as he faces legal challenges. Since entering public markets on&#8230;<\/p>\n","protected":false},"author":1,"featured_media":616806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/scx2.b-cdn.net\/gfx\/news\/2024\/donald-trump-still-sta.jpg","fifu_image_alt":"","footnotes":""},"categories":[16],"tags":[],"class_list":["post-616805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-sciencee"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/616805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=616805"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/616805\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/616806"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=616805"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=616805"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=616805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}