He’s already backed out of a direct donation pledge in the tens of millions monthly. Musk does not appear to care about the proprietary of being seen publicly supporting or not supporting him. He appears to care first and foremost about Musk. And what he thinks is best for Musk can and does change on a near daily basis.
I don’t think it’s impossible, but I suspect it would be to be rid of a competitor rather than to support a political candidate.
Truth Social isn’t much of a competitor to anything.
Elon Musk isn’t much at the nuts and bolts of being a CEO, either.
I said it wasn’t impossible, not that I thought it would happen. I can’t see Musk giving up the amount of money it would take for a business that is so deep in the red. That’s a terrible decision on the dot-com bubble level.
Its current market cap is 4.5 billion dollars. Even if he bought it at half its current value that’s still cash he (probably) doesn’t have. And even if he did have it, buying Truth would give money to lots of people who arent Trump.
Twitter at least had value when he bought it, even if he’s largely destroyed it since then. Truth Social is completely worthless and, even in Twitter’s current state, still poses zero threat as a competitor.
It would be a silly move even by Musk’s standards.
Wouldn’t it trigger an anti-competition investigation by the SEC?
I thought resistance point was an upper bound and “support” was a lower bound, but I don’t know much about investing
Yes you’re right.
That’s the usual terminology. There’s resistance at a certain upper bound because of profit-taking, and there’s support at a certain lower bound because of opportunistic bargain-seeking. But once a stock shows clear signs of breaking through either one, all bets are off until a new support or resistance level is established. For a worthless stock like DJT, I suspect the support level is just slightly above zero, in the same sense as an unexpired lottery ticket has some intrinsic value.
Several big investment funds have bought a lot of shares of DJT including, for example, a Vanguard unit.
Why? For some reason DJT has been added to a couple of index lists and if you have a fund that covers those lists you have to buy them no matter how stupid it is. E.g., Vanguard’s investment was estimated to be around $93 million. Gulp.
These companies need to change the rules so that it’s “We invest in all the companies in the index except the ridiculously stupid ones.” Or, better yet, no one puts an obvious scam on such a list.
An index wouldn’t be an index if someone chose which companies to include (aside from whoever defines the original index).
Agree
Here at the Stupid Index, we invest in the ridiculously stupid companies. Weighted, of course, by how much stupid the company represents. Current holdings are 100% DJT. We would like to diversify, but DJT is the black hole of stupid.
Probably not, because the acquisition wouldn’t do anything to increase X’s market share, what with Truth Social having a minuscule user base?
Also because the SEC isn’t in charge of competition/monopolies. That’d be the FTC and the DOJ.
Now down below $22.
Only because Xitter is private as well as most crypto companies. Although I guess to maximize the stupidity you could save your temporarily-uninvested funds in a Bitcoin ETF rather than a money market.
Every meager earnings report, every catastrophic monthly losses, every pathetic usage numbers convinces me that the stock, hell the entire company, was set up to allow for money laundering of foreign “investments” if Trump to be elected again. There is no tenable business plan, the valuation is insane, and the only reason it makes any sense at all (outside of the MAGA rubes who seem content to lose their investment just so they can say they support a sexual assaulting loser) is if investors think that the company’s stock will increase if Trump is elected because the Saudis, Russian oligarchs, and anyone who wants to buy influence from him will pour money into the company to launder/make untraceable the money.
Out of a total of around 8.5 trillion. So for every million dollars Vanguard invests a about 11 bucks is in Trump media.
Right, and they are typically weighted by market cap. Although there is some circularity involved, as index funds are forced to purchase the stock once it’s sufficiently valued, thus further increasing its price.
With index funds being so diversified, a worthless DJT is not necessarily bad. It just means that sellers of DJT likely just reinvested their proceeds into other stocks in that same index. So any value lost on DJT is made up for by other stocks rising.
Interesting editing there. After the “Why?” I immediately explained why Vanguard was buying DJT.
That a lot of DJT’s “business model” was a way to put money into Trump’s hands was obvious from the get go.