New York
CNN
—
Trump Media & Technology Group is losing money, generating very little revenue and its main product Truth Social remains a relatively small player in social media.
Yet Wall Street is valuing former President Donald Trump’s social media company at $9 billion, a price tag that has more than tripled in the span of just five weeks.
Since plunging to record lows on September 23, Trump Media’s share price has skyrocketed. Market veterans say this monster comeback is being almost entirely driven by bets that Trump will win the White House.
“I’ve never seen anything quite like this. This company’s value is almost entirely based on the outcome of an election,” Gene Munster, managing partner and co-founder of venture capital firm Deepwater Asset Management, told CNN in a phone interview.
After surging 32% last week, Trump Media climbed another 16% on Monday morning.
“It sounds crazy but that move, to me, is justified because it’s a binary outcome,” Munster said. “It’s pretty straightforward: If Trump wins the election, it’s going to be worth more than the $8 billion it’s currently worth.
Trump is the dominant shareholder in the company that bears his name. His stake of 114.75 million shares is now worth about $5 billion, up from $1.4 billion on September 23. Of course, those are paper gains and Trump would have a hard time selling shares without tanking the stock price.
The fact that Trump has pledged not to sell his shares — and that he has not disclosed any stock sales — has helped boost the share price.
Obey
Article URL : https://www.cnn.com/2024/10/28/business/trump-social-media-stock-election/index.html