• BaroqueInMind@lemmy.one
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    8 months ago

    So Trump Media is operating on a revenue stream of 4 million a year, and is reporting a yearly loss of 58 million. How the fuck is that company’s stock rated at $60/share?

    • Kid_Thunder@kbin.social
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      8 months ago

      Share price has never really been a representation of company health. Shares are traded at what people will buy them for. There also may be a lot of short selling going on waiting for the plummet.

      • RagingRobot@lemmy.world
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        8 months ago

        He overvalued it like he does everything he owns. The same thing he already got in trouble for in new York. This time it’s with a fake tech company instead of real estate.

        • Windex007@lemmy.world
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          8 months ago

          You can set the initial sell price in an IPO but nobody is obligated to buy it. Markets determine market price, and especially in tech they’re speculative in nature. This is in no way shape or form the same as what he did with his real estate.

          This current valuation is probably propped up by the same idiot base who buys his Bible’s and NFTs, or by foreign (or domestic) investors looking to indirectly buy his favour in anticipation of a 2nd presidency. Maybe a combination of the 2.

          • paddirn@lemmy.world
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            8 months ago

            I wonder if there’s actual serious investors valuing it that high, basing it on the possibility of a Trump win in the presidential election? Trump comes to power, does all his crazy fascist things and becomes dictator-for-life, and Truth Social becomes THE state media. Stock in in any other media company becomes worthless when Trump starts using the power of the presidency to shut them all down and we’ve only got one state-owned media company reporting on everything. It’s scary, but as an investor it might make a certain amount of sense.

            • Windex007@lemmy.world
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              8 months ago

              Given how much government money was spent at mar-a-lago it’s not at all absurd to say that part of the market price is based on the speculation of DJT receiving favourable government treatment/contracts if we see a second Trump term.

              I’d be curious to see how tightly polling correlates with DJT market value. It’s basically a corruption perception R2 index.

    • Stupidmanager@lemmy.world
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      8 months ago

      Well first, throw logic out the door and you’ll come by your answer a little easier. hint, it’s because of capitalism.

    • Asafum@feddit.nl
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      8 months ago

      I wouldn’t be surprised if it’s just like essentially “Trump Bitcoin.” Effectively worthless but he’s got a gigantic pool of people who will throw money at him.

    • FlowVoid@lemmy.world
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      8 months ago

      It’s worth $50, not $60. Anyway, share prices are arbitrary because they depend on the number of shares.

      Trump Media has a market cap of $5b, about the same as Lyft which also hasn’t turned a profit.