If you happen to own any shares of Trump Media & Technology Group, you should dump them as soon as possible before the price collapses completely and you lose every penny of your investment, financial analysts are warning.
Forbes Senior Editor Dan Alexander says Trump Media is “bleeding money,” telling CNN host Erin Burnett, “It is a sad story. And the trouble here is that if you look at the fundamentals of the company — it’s poised to go down a lot more.”
When it was first offered on the stock market in late March, Trump Media reached a high of over $79 a share. It now stands at $23.77.
The company has even admitted that its financial situation could easily lead to bankruptcy, noting in a filing, “A number of companies that were associated with President Donald J. Trump have filed for bankruptcy,” reads one of the sections of the document. “There can be no assurances that TMTG will not also become bankrupt.”
That, according to Alexander, means Trump Media stock “should fall by at least another 90% before the metrics start to make any amount of sense.”
“For people who are just blindly putting their faith in Trump and in the company — that means that they can stand to lose a lot of money,” Alexander added.
The company was mainly set up to benefit Trump, Alexander went on to explain.
“Meanwhile, the retail shareholders were putting up huge sums to buy in. The ultimate effect is that they put in the cash and the other people walk away with the shares.”
As Rick Wilson rightly observed several years ago, everything Donald Trump touches dies. Including his so-called “media company.”
