Explosive: Is Trump playing a dangerous con with his Truth Social media company?
∙ PAID
Truth Social just went public on NASDAQ.
In the first day or two of trading, news outlets are reporting Trump made billions.1
Accurate company financial numbers are hard to come by. But going public, with an Initial Public Offering (IPO), based on around 5 million users, almost no prior company income, and a debt of $50 million…that’s quite risky.
The debt is understandable; but not so few users. And you’d expect reasonable prior income.
I wouldn’t be surprised if the stock price took a drastic down turn at some point. That would leave many investors (ardent Trump followers) in the lurch.
It’s a strange situation. For every promise Trump makes about what he’ll do if elected President, more of his flock could be motivated to join Truth Social as users, and buy stock. Both actions would contribute to the valuation of his company.
So…even if Trump is making empty promises, his wealth would increase.
Is Trump violating ethical business practices? It would be foolish to think the Securities and Exchange Commission isn’t looking into that.
And again, selling stock based on so few users (compared to, say, Twitter or Facebook at the time they went public) strikes me as very shaky for investors.
Does Trump have support (investors in the wings) from people he did favors for when he was President? Pfizer comes to mind. After all, the Warp Speed program to develop a vaccine so quickly was Trump’s baby, and Pfizer (and Moderna) benefitted greatly. Pfizer did drop a million bucks on Trump for his inauguration. And Trump absolutely refuses to admit the vaccine is a catastrophe. He still pumps it up.
Speaking of potential investors in Truth Social, how about the deep-pocket Saudis? Their LIV golf tour has scheduled a few stops at Trump’s courses. What would they want in return for backing Truth Social?
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