Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”

The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.

Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.

The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.

“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.

  • hamid@lemmy.world
    link
    fedilink
    arrow-up
    6
    ·
    7 months ago

    Con job is the name for what you described. It is short hand for confidence game and literally means “A confidence game, also known as a con, scam, grift, or flim flam, is an attempt to win the trust and confidence of a victim, known as the “mark,” in order to defraud them.”

    Those soulless hedge fund managers and conning the investors and Trumpers to make money.