Trump Media Group ($DJT) is facing scrutiny regarding its high valuation and trading dynamics. Fidelity has reduced its valuation for Twitter/X, impacting the overall market perception. Concerns arise over the high valuation of $DJT compared to its social media peers, potentially leading to a significant share price decline.
The Trump SPAC is… $djt
Listen to @chamath’s take on $DJT stock at 16:41. If Trump folds in licensing revenue from his name, image, likeness into the $DJT company, it starts to look like an actual business. It would be foolish to short this. 600% annualized cost to borrow. https://t.co/vZBI6PR2Gt
While elon clearly overpaid for X, unsure why Fidelity opinion on valuation matters. https://t.co/0sedoIyySi
Fidelity cut the value of their holdings in Twitter/X by another 5.7%, marking it down to ~$12B. I would be a buyer at that price! Unfortunately the fund that Fidelity has X in ($FBGRX) has $53B in assets and only $5.3M of it is in X. https://t.co/hHeCqxke1g
Trump Media trades at a valuation of 2,500x sales Its social media comps trade at 4x to 12x sales If it were to trade in line with its peer group, $DJT share price would decline -99.7% from current levels https://t.co/DKJWEaQZVs
Thinking about buying Truth Social stock? Trump's own filing offers these warnings. https://t.co/Bd829B5cQ7
#ElonMusk's X worth falls 73% since purchase, Fidelity valuation cut reveals https://t.co/wnCvnEoY5w https://t.co/5Q95a3ARx3
Fidelity lowers its valuation for X (Twitter) by another 5.7% in February, taking its full write down to 73% from the original $44 billion valuation. This values the company at $11.9bn vs peak $8bn for $DJT. Fidelity owns its stake in the Fidelity Blue Chip Growth Fund...
One reason Trump Media could trade at a sky high level for quite sometime barring an unforeseen event is due to the float. At 29 million shares, it's roughly the same as with Digital World and that makes it hard to short the stock until the lockups expire or there is a secondary.
Chamath re. $DJT and increasing gamification in markets on @theallinpod “Recently, adding fuel to the fire are things like zero-day options” —@chamath “There was a big article in WSJ where one of the reporters, she became addicted to it…she got like a 2000% return”
More on the (limits to) arbitrage for Truth Social/TMTG/$DJT https://t.co/UsIwEmyOrD