Category: Business

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.”

As bad financial news continues to pour in for Donald Trump and his teetering Truth Social site, the failed former president took to social media Thursday morning in a desperate attempt to prop up his latest flagging business venture.

With multiple reports of massive financial losses for Truth Social making headlines, the disgraced ex-president resorted to his usual strategy of bombast and outright lies as a defense.

“All of the competitors to TRUTH SOCIAL, especially those in the Radical Left Democrats Party who are failing at every level, like to use their vaunted ‘disinformation machine’ to try and convince people, and it is not easy to do, that TRUTH is not such a big deal and doesn’t “get the word out” as well as various others, which they know to be false. I THINK TRUTH IS AMAZING!’ he wrote. “First of all, it is very solid, having over $200,000,000 in CASH and ZERO DEBT.”

Trump then claimed the reason Truth Social will succeed is because it’s connected to him, even though the long trail of failed businesses carrying his name suggests otherwise.

“More importantly, it is the primary way I get the word out and, for better or worse, people want to hear what I have to say, perhaps, according to experts, more than anyone else in the World. My TV ratings are by far the highest, and my Rallies are not equaled, even close, anywhere or by anyone. Look, I had hundreds of millions of followers on various platforms, and could have them back again, but was cancelled for largely political reasons. Those platforms all want me back…They need me back! On Truth I have 7,000,000 followers……”

In a second post, Trump claimed press reports of Truth Social’s financial struggles were “fake news.”

“So don’t believe the FAKE NEWS. Until I came along and exposed them, they were respected and believed. Now they are the exact opposite. With the Russia, Russia, Russia HOAX. and all of the others, people get it. Look, using TRUTH, I became the Republican Nominee for President of the United States, and in record time! When I ENDORSE a politician on TRUTH, they almost ALWAYS WIN. If it didn’t work, or properly get the word out, I wouldn’t use it – But it does work, and work really well – And the fun is just getting started!!!”

But as Fortune noted earlier this week, the underlying financial health of Truth Social has dragged down its stock price.

“Trump Media’s shares soared in their first couple days of trading — surpassing $79 at one point Tuesday — but have since fallen closer to their initial offering price of $49.95. As of midday Monday, Trump Media’s stock plunged more than 23% to below $48, meaning a lot of early investors are taking a hit.”

It will be interesting to see if Trump Media shares continue to tank on Wall Street today. If they do, the Truth Social could soon become nothing but a memory.

The stock of failed former president Donald Trump’s Truth Social site skyrocketed in value this week, rising from $8.23 a share to $66.22 at the close of trading on Wednesday, boosting the value of Trump’s Media & Technology Group to a market value of $9.4 billion. Since Trump owns 58% of the company, that means he’s now worth $5.2 billion, at least on paper.

And therein lies the rub, according to New York Times Pulitzer Prize-winning reporter Suzanne Craig, who explained on MSNBC’s “The Last Word” that the Donald’s billionaire status is illusory and could plummet even quicker than it rose.

“It’s a very volatile and high-risk stock, so it could be anywhere from worth a lot more in six months to almost zero in six months, we don’t know,” she said.

The meteoric rise of Trump’s social media stock comes at a time when he’s desperate for money to pay massive defamation and fraud judgments against him, and Craig noted he may still not be able to raise the funds he needs to meet his court obligations.

“We don’t know where he’s going to get the money from. He said that he’s going to put up cash, but you can get cash from a lot of places.”

The disgraced ex-president might try to leverage his stock holdings into some sort of loan, but that also seems dicey, Craig explained.

“Who knows what [the shares] are going to be worth in six months. There is speculation he’ll get a loan off those shares. I don’t know who would lend him money on those, because you don’t know what it’s going to be worth down the road.”