Trump's meme stock hides bad news in victory

Trump Media, the company behind Truth Social – which is majority owned by Donald Trump and accounts for the majority of his theoretical net worth – buried its latest financial results after the market closed on November 6 as attention focused on Trump's delayed announcement. Choice.

The company acting as DJT on Nasdaq announced that the company had quarterly revenue of $1.01 million. $1 million per quarter is typical for DJT, which reported revenue of $6.8 million over the last seven quarters.

Readers, DJT is worth $7.2 billion. It trades at more than 2,000 times its sales. How much should it be worth?

It has no obvious value. Barry Diller (the Daily Beast's majority owner) commented on the company in April on CNBC's Squawk Boxcompared to Game Stop, the famous pandemic-era meme stock.

“It's ridiculous. “The company has no income,” he said at the time. “How could you put a value on that?”

Elon Musk has bought Twitter about nine times its sales in 2021 pay way too much for it. If Trump Media were valued on the same basis, it would be worth around $30 million.

That would be generous. Trump Media has lost tens of millions over the past two years in quarters where it struggled to reach $1 million in revenue.

It is true that the eventual value will probably approach $0. This puts Trump – whose nominal stock holding is $4.1 billion – in a strange position.

How much of the stock can he liquidate without the value declining completely?

Two of the company's co-founders immediately sold their shares in the company six weeks ago after a lock-up period for them expired.