Small time investors on Trump's Truth Social reckon with stock collapse.

[Cellblock2429]

I won't, but you will not keep me from speaking out against it to warn other investors. If you bought it and are trying to pump it....too bad

/——/ I don’t pump stocks and don’t care how you invest, nor am I trying to silence you.

 

[Skylar]

Most of these folks are trusting and hard working, and don't even see it coming. Blind faith never ends well.



Jerry Dean McLain first bet on former president Donald Trump’s Truth Social two years ago, buying into the Trump company’s planned merger partner, Digital World Acquisition, at $90 a share. Over time, as the price changed, he kept buying, amassing hundreds of shares for $25,000 — pretty much his “whole nest egg,” he said.

That nest egg has lost about half its value in the past two weeks as Trump Media & Technology Group’s share price dropped from $66 after its public debut last month to $32 on Friday. But McLain, 71, who owns a tree-removal service outside Oklahoma City, said he’s not worried. If anything, he wants to buy more.

“I know good and well it’s in Trump’s hands, and he’s got plans,” he said. “I have no doubt it’s going to explode sometime.”

For shareholders like McLain, investing in Truth Social is less a business calculation than a statement of faith in the former president and the business traded under his initials, DJT.

Even the company’s plunging stock price — and the chance their investments could get mostly wiped out — doesn’t seem to have shaken that faith. The company has lost $3.5 billion in value since its public debut last month.

As a business, Trump Media has largely underwhelmed: The company lost $58 million last year on $4 million in revenue, less than the average Chick-fil-A franchise, even as it paid out millions in executive salaries, bonuses and stock.

And in two years, Truth Social has attracted a tiny fraction of the traffic other platforms see, according to estimates from the analytics firm Similarweb — one of the only ways to measure its performance, given that the company says it “does not currently, and may never, collect, monitor or report certain key operating metrics used by companies in similar industries.”

But for some Trump investors, the stock is a badge of honor — a way to show their devotion beyond buying Trump merchandise, visiting Trump golf courses or donating to Trump’s presidential campaign.

https://www.washingtonpost.com/technology/2024/04/14/truth-social-investors-faith-trump/

The only time MAGA faithful snap out of their cult mentality....is when the consequences are immediate and real. Redcaps who stormed the capitol to stop the vote count who went to jail.....often had very different perspectives on Trump and MAGA when they came out.

The business fundamentals for Truth Social are comically inept. A 10 billion dollar valuation on $4.1 million in annual revenue and 58 million dollar losses? The revenue to stock valuation disparity is insane. It would take GE about 3 year's worth of its annual revenue to match its stock value. Twitter when it IPOd would have taken over a dozen. Microsoft, about 50 years.

Truth Social? Over 2400 years. And of course, lose $141,462,000,000 in the process.

What social media company that is only making 4 million in revenue a year hires a fucking FARMER with a degree in agriculture to run its company, then pays him 1 million a year? Literally a QUARTER of their annual revenue.

Investing in Truth Social should hurt the small investor stupid enough to ignore all this and invest emotionally. There should be consequences.

Its the only way to teach a cult member about reality.