Former President Donald Trump's social-media company, Truth Social, has seen a windfall of nearly $4.9 billion from a Wall Street deal, but the stock is considered overvalued. Trading at 1860.3x earnings, it faces skepticism from analysts and comparisons to other social media companies like Reddit, Meta, and Pinterest. Despite a high valuation and limited shares available for trading, concerns remain about the stock's sustainability and potential decline in value.
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
#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.
Donald Trump's social platform Truth Social trades at a slight premium to other social cos • Truth Social 1860.3x • @Reddit 9.8x • @Meta 9.2x • @Pinterest 7.7x • @Snap 4.1x • @tiktok_us 1.9x (parent: Bytedance) If this valuation holds up, Elon will be happy https://t.co/7hEx2YCdkh
$DJT Truth Social looks A LOT like X. Ain’t that the truth. https://t.co/Qs7f8hIiK3
On paper, a Wall Street deal to take public the former President’s social-media company has given him a windfall of nearly $4.9 billion. But the stock is grossly overvalued and Trump can’t sell it immediately, @JohnCassidy writes. https://t.co/gxfxCwn6wT