Former President Donald Trump’s latest venture, Trump Media and Technology Group (TMTG) has seen its stock soar to unprecedented heights, adding a whopping $6 billion to Trump’s net worth.
According to Trending Politics,
…shares skyrocketed to a high of $79 last week before settling at $57.99, the company’s valuation reached an astonishing $8 billion and reportedly added $4 billion to Trump’s wealth, and the network’s personalities did not hold back their criticism and astonishment.
Critics are crying foul, questioning the role of the Securities and Exchange Commission (SEC) in what they are deeming as blatant market manipulation. MSNBC hosts, in their typical fashion of hyperbolic outrage, have taken to the airwaves to express their disbelief and scorn at the situation.
According to MSNBC, the soaring valuation of TMTG, reaching an astonishing 2,000 times its revenue, is “absurd.” They are appalled that the SEC has not intervened, claiming that the company’s success is purely based on speculation and Trump’s loyal fanbase.
They are also quick to point out the potential conflicts of interest if Trump were to use his paper wealth to cash out. He would need permission from the company’s board, which could potentially cause a massive sell-off.
MSNBC’s Stephanie Ruhle went as far as to call the whole situation “fakakta,” a Yiddish term for something that is nonsensical or messed up. She argues that, unlike other successful social media platforms, TMTG lacks a concrete business strategy beyond being a platform for Trump’s postings. Ruhle and her panelists suggest that TMTG’s success is based on “unofficial payments” and “unregulated donations” that could potentially be used for political purposes.
But let’s not forget that TMTG is a media company, and like any media company, it needs advertisers to generate revenue. With the platform’s success hinging mainly on Trump’s brand and potential political future, it’s unclear if advertisers would be willing to invest in such a polarizing figure. So far, TMTG has brought in a paltry $3.4 million in revenue over the first nine months of 2023, and analysts are skeptical of its ability to sustain the lofty valuation.
According to social media posts, some die-hard Trump supporters are flocking to purchase shares in TMTG despite the uncertainties and potential risks. However, a significant portion of the trading volume seems driven by speculators looking for quick profits. And with large investment firms set to disclose their positions in TMTG by the end of March, it remains to be seen if Wall Street will embrace the risks and join in on the speculation.
For now, TMTG remains a fascinating anomaly, with its stock experiencing wild swings and attracting attention from investors and critics alike. Only time will tell if Trump’s latest venture will live up to its colossal valuation.
