Big news from Trump Media and Technology Group.
That company reported a loss of more than $300 million
in the first quarter and had minimal revenue.
The company, most of which is owned by former President
Donald Trump,
faced scrutiny over its multi billion dollar valuation after the
results.
The loss of over $327 million was attributed to one
time losses related to the company's recent IPO compared to
a loss of $210,000 in the same period a year
earlier. Company also cited non cash expenses from the conversion
of promissory notes and the elimination of previous liabilities as
reason for the losses.
Well, Trump Media reported an operating loss of $12.1 billion
partly due to one time payments associated with its merger
earlier in the year.
Here's a live look at shares of DJT that's the
ticker symbol Donald Trump's initials.
Just about half of its recent high that we've seen,
$46 a share, down 6%
in the past two days.
Dave, so much to talk about this company.
Especially as we head into election,
But notably a company even with the losses that still
commends a $6 billion valuation,
has minimal users and is not in the is not
making a lot of money.
That is, it is a very strange company from an
investor's perspective and I think that's underlined by Matthew Kennedy
from IPO IPO market strategist at Renaissance,
he said. I can't emphasize enough how unusual it is
for a company with this little revenue to have this
high evaluation.
In that regard, it almost feels sometimes like a meme
stock.
What is that 6 1/2 billion dollar valuation?
What are they seeing that we're not right And how
could it potentially be impacted by campaigning during an election
or even a presidency?
So it's it's a story that we're going to stay
on.
But I think it's also worth noting when we come
down to the numbers here to add to those comments
from Renaissance Capital is 113,000 people use truth Social.
So this company owns truth Social even within the social
media space.
It's minuscule, Exactly. Very, very small.
And a company that wants to make money on ads
and streaming,
but obviously needs to show investors progress on that if
the stock is to move on fundamentals.
So either investors are banking on Donald Trump returning to
the White House and that growth,
that exploding the user base,
which we haven't seen any indication of that happening,
or as their CEO, Devin Nunez,
the former congressman, said. We're particularly excited to move forward
with live TV streaming.
By developing their own content delivery network.
Perhaps that justifies some form of 6 1/2 billion dollar
valuation.
Not all of it, but maybe that's the long term
bet,
A future baked in. I would say yes for investors.