• logicbomb@lemmy.world
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    3 months ago

    Trump, a main draw for Truth Social users and many retail investors in the company, said earlier in September that he will not sell his stake. The stock price briefly shot up after his remarks.

    Other early investors have made no such promises. They include ARC Global, a sponsor of the blank-check firm that took Trump Media public, and United Atlantic Ventures, an entity controlled by two former contestants on Trump’s reality show “The Apprentice.”

    I believe it’s not only that these investors made no promises not to sell, but that several of them specifically expressed that they would be selling as soon as they were legally allowed to do so.

    It’s hard to accurately value Truth Social. But I think if Trump were to leave the platform, its value would go to zero, and that makes it very risky. I just saw a price of 12.74. I wouldn’t be surprised if it’s still quite overvalued, and so it makes sense for those investors to try to sell at this price.

    • MagicShel
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      3 months ago

      It’s losing money hand over fist, has a tiny user base and little name recognition. They have no assets worth anything.

      The fundamentals are clear: the stock is completely worthless except as a wild gamble. People would be better off investing in penny-stocks.

      • grue@lemmy.world
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        3 months ago

        The fundamentals are clear: the stock is completely worthless except as a wild gamble.

        And as influence peddling/money laundering for Trump.