Donald Trump maybe suffer in in the courts…..
But Right NOW?
His stock holding’s ARE worth over $4 Billion in his social media compoany gone public….
He can’t cash out for 6 months, unless his share holders don’t sue against that…..
He owns the board and a majority stake of this….
I’m interested in does this last?
Cause it won’t….
There’s a new high-flying stock on Wall Street that some investors are eagerly piling into. Its largest shareholder is former President Donald J. Trump.
His social media company, Trump Media & Technology Group, began trading on the Nasdaq on Tuesday, under the ticker DJT, and immediately surged in value, gaining 40 percent in early trading.
Trump Media — the parent of Truth Social, the online platform that is Mr. Trump’s main megaphone for reaching supporters and going after critics — closed its merger with a cash-rich public shell company on Monday.
The shell company’s stock had jumped higher ahead of the deal, in a frenzied trade that has fueled the company since it proposed the merger with Mr. Trump’s firm in 2021. Trump Media has an estimated market value well over $6 billion, more than established corporations like Alaska Airlines, Western Union and American Eagle Outfitters….
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By most traditional measures, Trump Media’s valuation is inordinately high. The company took in just $3.3 million in revenue during the first nine months of last year, all from advertising on Truth Social, and recorded a loss of $49 million.
That means Trump Media’s market value is more than 1,000 times its estimated annual revenue. Investors sometimes assign lofty valuations to small, money-losing companies in anticipation of rapid growth — or a belief that other investors will continue to bid up a company’s shares, for whatever reason — but typically not on this scale.
Other social media companies trade at far smaller price-to-sales ratios than Trump Media: Reddit is around 10, Meta is 7 and Snap is 6….
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But as a public company, Trump Media will now draw more scrutiny from investors and regulators. It will be required to file periodic financial reports with the Securities and Exchange Commission and reveal in detail any new deals it may strike with Mr. Trump.
“In a public company you have the scrutiny now of investors and regulators,” said Usha Rodrigues, a professor of corporate law at the University of Georgia School of Law. “Any stockholder now has standing to bring a lawsuit if they claim one of the company’s statements is misleading.”…..