Should you buy Donald Trump's new stock?

Published first at https://www.3minutebreakdowns.com Trump Media and Technology Group stock analysis. Ticker: $DJT Donald Trump’s Truth Social merged with a Spac on Tuesday forming a company called Trump Media & Technology with the ticker symbol DJT. Based on company documents and accounting for various types of incentives, the company currently has a market cap of around 12.4 billion dollars. According to the Financial Times, Trump’s stake is equal to about 40% or 5 billion dollars. Those funds will be extremely handy since Trump has been ordered to pay more than $500 million on fraud charges. But $12.4 billion dollars seems wildly inappropriate for Truth Social. According to documents filed with the SEC, the social media platform made only 3.4 million dollars of revenue in the first 9 months of 2023. And social tracking data suggests the platform has fewer than 1 million monthly users. Even if Truth Social rolls out a paid subscription model and manages to 10x its revenue, the company would still be trading at over 400 times sales. Reddit by comparison, which is also overvalued, has a current market cap of 8 billion on 800 million of revenue and 73 million users. To be fair, even Trump’s team didn’t expect the valuation to climb quite this high. A presentation shared last year said the company could perhaps be valued at 1.6 billion on the high end of its forecast. That was based on Truth Social growing to 4 million paid users by 2026, and somehow getting to annual revenues of $400 million. #investing #stocks #djtstock #3mb