How Can Truth Social be worth $6 Billion? {Trump Media & Technology (DJT)}

In My Humble Opinion
941

Drones.

CONFLICT DRIVEN DEMAND

Conflict is driving a surge in FPV drone demand:
Ukraine projects manufacturing 4 million drones in 2025.
Estimates of Russian drone production ~1.4 million units per year.
To serve this demand, we are:
Fostering a new market segment for our component business,
positioning ourselves as a robust alternative to the currently
Chinese-dominated supply chains.
Strategically aligning our innovative technologies and
manufacturing capabilities to meet the U.S. Department of
Defense’s procurement cycle requirements.
Early orders for the Brave F7 are already going to Ukraine and we
are actively engaged with additional potential EU customers

https://api.mziq.com/mzfilemanager/v2/d/dc42d320-9904-4869-bdff-a5da8e276025/d4dab24c-64f2-7822-07f6-e24d35969992?origin=1

942

You are not telling me that tanTrump & Friends are going to support Ucraine against Putin for the sake of a couple of hundred million in drones? Oh, you said billion? Aha…
Hey, I would like that. I don’t believe it will happen, but it is a warming thought. Trump has never been loyal to anyone. Why would he be loyal to Putin?
My head spins.

943

No need to pick sides. It would be more lucrative to sell to both.

944

You all misunderstand completely.

The purpose is to inject themselves as middlemen into a supply chain. Not a single additional drone will be created, but theyll be able to extract an extra few percent “tax” for themselves on every one sold to either side.

945

Nope! All legit. /s

Drone-parts maker Unusual Machines says “Donald Trump Jr.’s advisory role is about the president-elect’s son’s business network, not his political connections.”

946

Whew! Glad to hear that. All on the up and up.

947

President-elect Donald Trump transferred his entire $4 billion stake in the company into a revocable trust

948

This WSJ article (paywalled for the whole story) says Nunes is making $47,000,000/year now.

https://www.wsj.com/business/president-trumps-media-company-seeks-to-reincorporate-to-florida-from-delaware-aff9faf6

949

So both truth social AND tesla are currently falling over 8% each today so far. I can live with that. I’ll check around, let’s see if there is a reasonable explanation. Are people coming to their senses? Nah, that would be too easy.

950

Tesla shares being down today specifically might have to do with a story in Bloomberg today that Tesla’s sales in Europe are down 45% while industry-wide EV sales are up 37%. (Story is paywalled, I haven’t read it, but those main points are in the headline.)

951

The market as a whole is on a significant decline the last several days, particularly tech stocks.

952

I periodically ask a friend of mine about DJT, and he says something along the lines of “There is no market/liquidity. As soon as anyone tried to sell any # of shares, the price would tank.”

No idea whether that is true or not, as I am woefully ignorant about the market.

953

The volume spiked this morning and tank it did.

954

So everybody’s watching everyone else, and when one guy visibly moves for the door, it will be devil takes the hindmost

955

Truth Social stock: -19.26% over the past month.
Tesla stock: -29.04% over the past month.
Amazon stock: -10.78% over the past month.

Fight woke, go broke.

956

DJT is now down 44% year to date and just hit a 52 week low. It’s at $18.93.

957

Acording to this article today (in German, I’ll translate with DeepL’s help for clarity and because laziness):

Shortly before his tariff announcement, US President Donald Trump is preparing to sell the shares in his media company Trump Media and Technology Group. This puts the share under pressure in Wednesday trading: it loses eight percent at its peak to up to 18.36 dollars.

The company filed a notification with the US Securities and Exchange Commission (SEC) on Wednesday, according to which it is offering a total of 142 million shares [out of a total of 220.41 million - Pardel-Lux] for sale. The majority, around 114 million, are attributable to the US President. He would therefore sell his entire stake, which was worth around 2.3 billion dollars before trading began on Wall Street.

Trump is thus breaking an earlier promise. After a major shareholder pulled out in September, he had announced that he would continue to hold his shares. Trump’s shares are pooled in a fund managed by his son Donald Trump Junior.

I find it surprising that the stock has recoverred a bit from the initial 8% loss today and trades at -5% now. But there is no shortage of shady deal and pricings doing the round recently, so let’s wait and see. Further down the article then:

The high volatility of the share is also accompanied by a sometimes unusually high trading volume. According to the SEC announcement on Wednesday, DJT shares were traded more than 6.2 million times in the first 90 minutes of trading alone. By comparison, around 1.4 million shares in SAP, the most valuable DAX company, were traded on Tuesday as a whole.

The majority of the shares are held by private investors who want to support the President. According to a quarterly report by the company, only around 2,100 of the 650,000 shareholders held more than 5,000 shares last year.

Translated with DeepL.com (free version)

So most of the shareholders hold less than 100.000$ each, out of a total market capitalzation of 4.210.000.000$. Poor suckers.
So: does the scramble for the door start now?
BTW: If there are 650.000 shareholders of which around 2.100 hold more than 5.000 shares and “DJT shares were traded more than 6.2 million times in the first 90 minutes of trading alone” on Wednesday, what does this tell us?

958

Ah, yes, and there is a new crazy right wing stock doing the rounds: NEWSMAX INC. Up 2.550% since Monday, down 70% (so far) today, Wednesday. Someone seems to have made a fine cut, I believe.

I think they specialise in news that trump likes. The faker the better.

959

The started trading for the first time on Monday and opened at $16.72 and closed at $97.80. on Tuesday they closed at $189.99 with a midday peak of $279.99. They are at $63 as I type this. We have 2.5 total days of data so speculation at first and then the original guys cashing out. I’m not sure what that tells us.

960

PT Barnum would know.