Even though failed, one-term former President Donald Trump’s latest business venture — a social media platform he’s dubbed Truth Social — won’t actually be operational until early next year at the soonest, he’s already raising money to finance the project, which has Chuck Jones of Forbes warning that putting a dime into the Trump project is “a sucker’s bet.”
Investors have been somewhat bullish early on:
From $10 to $52, then back down to to $45.50 and finally closing at $94.20. That’s some major fluctuation in such a short time, but Jones explains people are betting on a company that has no revenue and no earnings, which is just as absurd and unstable as it sounds:
As Digital World’s IPO prospectus stated, “We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for this offering. Following this offering, we will not generate any operating revenues until after completion of our initial business combination.”
Does that sound like something you want in your stock portfolio? If so, then you should probably hand over control of your investment decisions to a 10-year-old and let them choose what stocks to buy on your behalf.
There’s also the matter of the only other publicly traded company Trump has ever been a part of: Trump Entertainment Resorts, which included most of the Donald’s Atlantic City casinos. How did that work out? According to the Washington Post:
“The company operated for roughly two decades, starting in 1995. For Trump’s investors, it was a disaster: The company lost more than $1 billion, its stock price nosedived, and it filed for bankruptcy three times, in 2004, 2009 and 2014. … But Trump himself did well: The struggling company paid him more than $44 million in salary, bonuses and other compensation.”
Trump did great, but investors got fleeced. That’s the story of Donald Trump’s life. He’s a failure and he’s always been one. He just has others pay for his ignorance. And for some reason, they keep falling for his con job.