Truth Social losing money. has scant sales

[struggle4progress]

By Aimee Picchi
Edited By Anne Marie Lee
Updated on: March 22, 2024 / 5:48 PM EDT / CBS News

Former President Donald Trump will soon be at the helm of a publicly traded company that will trade under the ticker "DJT," after his initials ... a business that's losing money and has scant revenue.

Trump's next career move as head of a publicly traded company comes after shareholders of Digital World Acquisition Corp. (DWAC), a so-called blank-check company, also known as a SPAC, approved a merger on Friday morning with the Trump Media & Technology Group. With the nod, DWAC will combine with Trump Media & Technology Group and could soon begin trading under the latter name.

Typically, investors put their money into companies they believe will provide solid returns for their investment, though time-honored fundamentals such as profit and revenue growth, dividends and share appreciation. But Trump Media's main business, Truth Social, is a social media platform that is lagging rivals such as Facebook and "X" (formerly Twitter), with scant revenue and mounting losses, according to regulatory filings ...

https://www.cbsnews.com/news/trump-truth-social-spac-stock-value-djt/

Maybe it's just a vehicle for laundering bribes or cash from the sale of stolen documents?

[struggle4progress]

1. DWAC down nearly 14% down after merger approved by shareholders

PUBLISHED FRI, MAR 22 202410:57 AM EDTUPDATED 3 HOURS AGO

The price of shares in Digital World Acquisition Corp. closed trading Friday nearly 14% lower than their opening price after the shell company’s shareholders approved a merger with the social media company owned by former President Donald Trump.

DWAC had opened the trading day at $44.20 per share, but quickly tumbled on the heels of the vote.

By the market close, DWAC shares were selling for $36.94 per share, a drop of $5.87, or 13.71% ...

https://www.cnbc.com/2024/03/22/trump-social-dwac-stock-falls-after-merger-approved.html

It's a win-win!

[no_hypocrisy]

2. After this prospectus is announced, I predict the stock price will plummet

on Day One.

[RockRaven]

3. The whole thing is a pump and dump type thing, like most cryptocurrencies,

and NFTs, and frankly quite a lot of tech IPOs these days.

[struggle4progress]

4. Why would anyone invest in it?

BY MICHAEL HILTZIKBUSINESS COLUMNIST
MARCH 22, 2024 2 PM PT

The headline Trump news on Friday was that investors in Truth Social, his money-losing social media platform, voted to take it public at a valuation that could net the former president about $3 billion.

There’s some press conjecture that the transaction will relieve Trump’s current cash crunch, which includes the necessity of his posting a bond to cover a roughly $500-million court judgment by Monday to stave off the seizure of some of his properties by New York Atty. Gen. Letitia James. That speculation is probably, though not certainly, wrong.

From a financial standpoint, the primary questions are: Should you believe that figure? And, would anyone in their right mind invest in this thing? ...

In a prospectus issued last month, DWAC disclosed that Truth Social collected a mere $3.4 million in revenue during the first nine months of 2023 and booked a loss for that period of $49 million ...

https://www.latimes.com/business/story/2024-03-22/column-trumps-media-company-is-going-public-netting-him-billions-why-would-anyone-invest

[struggle4progress]

5. Truth Social Payday Won't Really Save Him

Tori Otten
March 22, 2024/10:55 a.m. ET

... Shareholders of Digital World Acquisition Corporation approved the merger with Trump Media & Technology Group, which has nearly run out of cash. The deal will inject more than $300 million into Trump Media and keep Truth Social, the former president’s personal social media platform, up and running ...

Trump is prohibited from selling any of his shares or using them as collateral for a loan for six months. He can ask the board of Digital World Acquisition Corporation to waive that rule for him, but it is unclear if they will agree ...

https://newrepublic.com/post/180060/trump-windfall-truth-social-merger-wont-save-him

[RandySF]

6. No big deal.

Do you think donors bought crates of Sarah Palin’s book because they couldn’t wait to read it over and over? People will buy that shitty stock just to be MAGA and stuff tfg’s wallet.

[AltairIV]

7. Stupidity is never rewarded

To some degree I believe you're right. But I'm hoping these a**holes dump there lifesavings into this thing and then, just as night always follows day, this thing goes belly up bankrupting all of them.

[BOSSHOG]

14. There is a bin at the county recycling barn

For old books. I saw “Going Rogue” there this week. Finally. A good use for it.

Yeah I can’t wait to buy stock in trumps latest venture. The odds are in my favor. right?

[BlueWaveNeverEnd]

8. it's all about money with Trump

[Karadeniz]

9. How can the SEC approve going public with such a financial disaster as trump?

[leftieNanner]

12. The original company is already public

They just merged with BS Social.

[Karadeniz]

17. Well, they need to reevaluate this company !!!

[NanaCat]

10. I'm rooting for it to become a penny stock by October

ETTD, after all.

[Dan]

11. When it goes public

It will be a way for foreign powers to put money into Trump pocket.

Trump has told America, he doesn’t give a shit about anyone but Trump.

We will lose the nation if Trump becomes POTUS again.

Actually, I suspect that the nation will split.

[Demobrat]

13. Sites like that make their money from advertising.

That’s a pretty limited target audience right there. An advertiser would have to be okay with spending money to reach only the MAGA crowd, and with being associated with everything Trump stands for.

Pillows will only get him so far. I’ve never looked at the site, so I don’t know who the advertisers are. There must be some, but it’s a finite pool. And once he loses the election, they will be paying to reach fewer and fewer eyeballs.

Who in their right mind would invest in that?

[Joinfortmill]

15. Trump is going down. Gonna lose it all...

If Melania was smart she took cash.

[thenelm1]

16. "will trade under the ticker "DJT," after his initials ..."

Seriously? This egomaniac just has to get some form of his name stuck onto everything he gets his mits into. At this point that name, in whatever form, should be pure poison and the kiss of financial ruin.

[PatrickforB]

18. Yeah, the only people who will buy stock in it are billionaire parasites hoping to get something back. n/t

[A HERETIC I AM]

20. You don't think the MAGAT faithful with a few spare bucks will buy shares?

Because I sure do. I bet the offering gets fully subscribed by the same doofuses that think he’s a brilliant businessman.

But no worries. I’m pretty sure he is restricted from selling shares he will own for quite a while.

[SouthernDem4ever]

19. "a vehicle for laundering bribes or cash from the sale of stolen documents"

Sounds like the best explanation to me.