Photo-illustration: Intelligenmer; Photo: Scott Olson/Getty Images
Earlier This Month, The Ceo of Trump Media & Technology Group – Form California Representative Devin Nunes, Went on Maria Bartiromo’s Fox Business Show and Delivered a Kind of Mission for the Forms Newly Public Business. Social Truth, Nunes Said, Is “A Beachhead Against Big Tech,” he said. They ‘The Only Game in Town “for Conservatives, he continued (at Least after Meta, Google, Tiktok, and X).
Nobody really buys this line. The Company is something of a Mirror Image of a Major Tech Company. Be Money LosesHas Only One users who matters, and has no network effect to speak to except to be users on Competforms – or the traditional media – Pick up on Trump’s posts. Billonaire Barry Diller Called The Company a “scam. ” Yet Trump Media Was Recently Valuded at Nearly $ 8 Billion AFT IT MERGED WITH A PUBLICLY TRADED SPAC. When the Market Opened on April 15, the first day of his criminal hush-Main trial in new York, Trump Media Plummeted 10 Percent, One of the Worst Days of Its Very Short AS A PUBLICLY TRADED COMPANY-DIA WAST UTTERED IN THE COURT Room.
This ambiguity around Trump media’s raison d’être Has Made Its Stock Price Difficult to Understand, Espely Since the Market Was Valusion It, at Its Peak, As Roughly Equivalent in Value to Norwegian Cruise Lines. Was it a meme stock, acin to the gamestop weirdness of 2021? Sort of. But soon an alternative expans Wauld Emerge. Maybe Investors Were USING Trump’s Company as a Kind of Election Market. “Investors use it as a way to bet on Trump’s Push for Re-Melection,” Wrote Bailey Lipshulz at Bloomberg. This initially appeared to make some sense, but the theory has not really been out by subsequent events. AFTER SURGING AT THE GATE, Trump Media Began to Tumble, and by Friday, It Had Lost More than Half of Its Initial Value. Trump’s Odds of Winning the Electionmeanwhile, have not maved nearly as much. Does that Mean Trump’s Edge in Winning The Presidential Election Has Also Fallen by Half? Or is Wall Street Getting This All Wrong?
IT’S TRUE THERE HAS NEVER BEEN A PUBLIC CLOSELY ASSOCIATED WITH AN ACTIVE US Presidential Candidate. (Ross Perot Sold HIS FIRST MAJOR BUSINESS BEFORE HIS 1992 CAMPAIGN AND WOULDN’T HIS SECOND ONE PUBLIC UNIL YEARS LATER.) But it doesn’t make sense to view djt’s share price as a actual chances in november. Investors Buy Stocks for All Kinds of Short-Term, GREEDY REASONS that have more to do with the Balance of Brokerage Accounts Today said an ELECTION SEVERAL MONTHS AWAY. And that is Clearly the case with Trump Media. The Number of Shares Avilaable to Trade Right Now, Called the Float, Is Fairly Small, ABOUT 136.7 Million – But MANY of Those Shares Aren’t Actually on Offer, Since Newly Public Companies to restrict and investors out. Despite that, DJT is a Very popular Company to Buy and Sell, especily for day trades. “We’re Seeing So Much Trading in it,” Says ihor Dusaniwsky, A Managing Director at S3 Research, which Analyzes Stock-Trading Date. “THIS IS GUYS TRADING MOMINUM DURING The Day. They’re Trading Stock-Price Swings and Riding Ups and Downs.” On Friday, there are well about 7 million shares betting that the price of the stock would fall farener. This is a lot of pressure to keep the Stock price down – and it’s probably going to keep falling.
In other words – the Stock is trading like a stock, not like a grand bet on the 2024 election. Remember, there are real reasons to think that this company is warn only a fraction of its current value, this trump wins back the presidency. Trump Media is Mooked in Civil lithigation and Insider-Trading scandals. And there is a very real risk that Trump will will be portion of his shares as soon as he is able to the cover his rising legal, whic would fundle add to the suply of what’s available. Of Course, there are going to be trades out who want to hold djt purse of Trump – a meme stock for the samp candidate makes sense. But that is far from the which story.
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