Gabe Hoffman
A
thread 1/6
You are probably no doubt hearing from the MAGA crowd that Donald Trump's money problems are over now that Truth Social has gone public but that's not exactly the cash cow, they claim it to be.
11:50 AM - Mar 22, 2024
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Gabe Hoffman
A
thread 2/6
As Yale law professor Johathan Macey explains, the stock price is essentially a bubble. No serious investor is going to take the stock at face value especially if they have to hold it for X period of time. Trump's biggest problem would be turning all that paper wealth into actual cash.
11:50 AM - Mar 22, 2024
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Gabe Hoffman
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thread 3/6
The thing with Truth Social is that it is essentially a meme stock in which the purported share price is grossly overinflated compared to the companies actual value usually as a result of internet virality. I.e. Truth Social's value is grossly overblown mainly because of right wing Trump hype.
11:50 AM - Mar 22, 2024
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Gabe Hoffman
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thread 4/6
As Jay Ritter explains, meme stock is largely rooted in the greater fool theory in which you buy stock at an overinflated price in the hopes you can make even more money selling it to an even bigger fool down the road.
11:50 AM - Mar 22, 2024
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Gabe Hoffman
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thread 5/6
Its extremely difficult to see how Truth Social can be valued at over 3 billion dollars considering.

1. Trump Media's total revenue amounted to 1.1 Million during third quarter with an operating loss of 26 million per SEC filings.

2. Number of US Truth Social users has declined 39% year over year.
11:50 AM - Mar 22, 2024
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Gabe Hoffman
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thread 6/6
Also its important to note that there will be a six month lockup period where Trump cannot do anything with his stock. And given the way things are going I don't expect Truth Social's share price to be very high by then. $DWAC shares have already been plummeting since the vote went through.
11:50 AM - Mar 22, 2024
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junerose32
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In response to Gabe Hoffman.
I hear the stock is tanking!
04:31 PM - Mar 22, 2024
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Jonathan Meyers
A
In response to Gabe Hoffman.
this is the thread we need today
12:00 PM - Mar 22, 2024
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