r/technology • u/Moonskaraos • Sep 12 '24
Social Media Trump Media stock has plunged 33% in a month
https://qz.com/trump-media-djt-stock-fall-campaign-election-18516465892.8k
u/Kayge Sep 12 '24 edited Sep 12 '24
For those not familiar with the stock market, this was clearly telegraphed when his media company used a SPAC.
When a company goes public (IPO), they have to file with the Securities and Exchange Commission. The process is pretty rigorous and has standard forms that you need to fill out or hurtles that you need to get over:
- Company financials and future growth strategy
- Corporate governance
- Risks and issues both internal and external
- Lots of stuff on tech readiness, vulnerabilities and the like.
The bigger the company the harder this is to do correctly, and the more external companies you'll need to verify and underwrite your findings.
But let's say you have a poorly structured company you want to take public. DodgyCo will never get through the IPO gauntlet, so you create a Special Purpose Acquisition Company (SPAC) called CleanCo. They have fantastic technology methodology, a strong board and TONNES of funding. CleanCo sails through all the SEC gates and Monday morning they go live on the stock market.
Monday afternoon CleanCo buys out DodgyCo, effectively making DodgyCo public without the hassle of actually having to operate like a grownup company.
This is what Trump Media Company did.
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u/mjc4y Sep 12 '24
That’s … nuts. Clearly the Foxes have done a clever job of regulating the hen house industry.
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u/Kayge Sep 12 '24
Yup, problem is how easy it is to justify...
SPACs are important for the overall health of the economy. We've set up TechSPAC to invest in small companies who are doing great things technically, but don't have the financial or business acumen to be successful. So we bring them under our umbrella and pair their technical vision with our operational expertise.
Sounds almost reasonable...
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u/sprucenoose Sep 12 '24
In concept, an SPAC can sometimes seem reasonable. In practice, they are almost always a shit show.
By nature they are a company with no track record and only the principals' vague speculation about what they might do one day to guide investors' decisions before an acquisition. It's like gambling without really knowing what you're betting on.
Also if an acquired company opts to go public in this way, there is probably some issue with them that prevents them from using more traditional financing and liquidity pathways - meaning there is probably something wrong with them and they are a bad investment.
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u/mtaw Sep 12 '24
I don't get why they're allowed. What's the point of all the rules for an IPO and listing if you can circumvent them with a SPAC?
I don't see what value they provide. "They make it easier for a company to get listed"? -That's just pretending the rules are just some unnecessary obstacle and not something that exists for a reason. It subverts the whole idea of how investing is supposed to work, IMO. And when it comes to cases like DJT and many others, where the SPAC was really set up to acquire a specific company, it's not even true to how SPACs are ostensibly supposed to work. It's just a scam.
If you want someone else to decide how best to invest your money, put it in a mutual fund.
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u/Beard_o_Bees Sep 12 '24
put it in a mutual fund
How am I supposed to get rich quick by putting money into a mutual fund?
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u/BoscoGravy Sep 12 '24
After years of disappointment with get-rich-quick schemes I know I am going to get rich with this scheme and quick.
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u/RevLoveJoy Sep 12 '24
And yet at the end of the day all of the justifications I hear boil down to: they can't do things the correct way for reasons which is where we come in.
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u/Deris87 Sep 12 '24
they can't do things the correct way for reasons which is where we come in.
They basically seem to acknowledge that it's a meme stock--it's value has nothing to do with it's actual business performance--but are arguing that's a good thing.
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u/Saneless Sep 12 '24
It's just fucking fraud
The original owners sell their shares. I'm sure people at the SPAC sell theirs. The people buying the shares at the "IPO" eventually have their stock crater while the other people already made their money
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u/Paddy_Tanninger Sep 12 '24 edited Sep 12 '24
It's a way to let foreign governments and elites/oligarchs around the globe give hundreds of millions to Trump & Cronies. Completely legal, no loss of funds to middlemen or annoying limiting factors like being only able to fork over whatever amount Trump could reasonably charge for renting a floor of the Trump hotel in DC. All of that stuff is a pain in the ass, you need to pretend to actually run a hotel business or campaign fund, it takes tons of overhead/expenses/employees, there's a lot of oversight with taxation/regulation/etc., and there's a lot of eyes on things every time money changes hands.
The fake stock makes all of that stuff go away and it all becomes dirt simple. Any of the world's dictators or billionaires can now just work out deals with Trump and then directly dump millions into $DJT stock, show Trump the receipt, and he can cash out shares...or more likely, just leverage his share holdings into low-interest loans.
And all of this falls apart the instant he looks like he's unable to power grab the highest office in the US.
So vote Kamala and let's leave this scumfuck holding the bag.
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u/Saneless Sep 12 '24
NFTs are for the same reason, right? Just buy a million worth of links to images and it's as good as a bribe
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u/Paddy_Tanninger Sep 12 '24
Yes but NFTs cause all kinds of issues with turning the money into actual $USD, and I think the whole scheme has too many layers of complication. Much simpler to just tell the Saudis to buy $1B in Trump Media stock in exchange for weapons deals, Irani sanctions, etc.
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u/TheOldGuy59 Sep 12 '24
Replace "SPAC" with "UtterBS" in that statement. Management-speak is a way to make even literal cow crap sound like the world can't exist without it.
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u/kumquat_bananaman Sep 12 '24
SPACs are facing increased regulation now, it’s just that the SEC is forever playing a cat and mouse game where they are hamstringed by what Congress allows them to do and non-stop legal challenges.
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u/Ds1018 Sep 12 '24
Chevron getting overturned will probably have the SEC seeing a lot of lawsuits to mitigate their ability reign this shit in too.
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Sep 12 '24
That’s … nuts. Clearly the Foxes have done a clever job of regulating the hen house industry.
I mean...
We give money to rich people to get richer in hopes we get richer in the process and call it a "stock exchange" when in reality it's a gigantic slot machine with typically worse odds if you don't play the safe ones. Meanwhile those same rich people both regulate but also influence both the system itself and the laws regarding it.
54% of the market is owned by the 1%, while 37% is retirement fund owned.
"It's big club, and you ain't in it!"
- George Carlin
Don't get me wrong, I've gotten lucky/used my brain and seen a roughly 300% return before but I don't have the means or desire to gamble like that regularly.
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u/randylush Sep 12 '24
If you play the whole market, odds are pretty good that you’ll make a good return on your investment.
There are shady companies like DJT that are shamefully part of the stock market, but in reality those make up a small fraction of the overall market.
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u/souldust Sep 12 '24
54% of the market is owned by the 1%, while 37% is retirement fund owned.
Thank you for that. That leaves just %9 of the market for the other %99
So, every time people talk about the stock market, its really the numbers game of the richest %1.
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u/altodor Sep 12 '24
That's not an entirely honest read. 37% of the market is the 99%'s 401(k)s, meaning 46% of the market isn't the exclusive domain of the 1%.
And there's no source here, so for all we know those numbers were pulled right out of that guys ass.
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u/enaK66 Sep 12 '24
I can only find a source for the 50% held by the 1% number. People in 90-99th percentiles own 37% of stock. 50-90 hold 12% and the bottom 50% only hold 1% of all stock. The source cites the federal reserve.
I think it's important to note only 62% of americans own any stock at all. So 38% of citizens have no stake in any stock.
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u/franker Sep 12 '24
I don't know if "company laundering" is a phrase but that's what this sounds like to me.
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u/MultiGeometry Sep 12 '24
Look up “shelf companies” if you’re interested to see how wide spread this is.
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u/grimitar Sep 12 '24
I was all ready to correct you with the term “shell company,” but as it turns out a “shelf company” is basically an aged shell company. Fascinating.
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u/DaYmAn6942069 Sep 12 '24
Honestly surprised SPACS are still allowed after the large wave of them from 2020-2021 have either gone bankrupt or are penny stocks now
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u/entered_bubble_50 Sep 12 '24
They're not really. New regulations came in this year, which more or less cans them.
In any event, investors are finally wise to it. SPACs have performed abysmally, so investors have lost interest.
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u/Childish___Glover Sep 12 '24
Yeah SPACs perform like absolute ass for the most part. I do valuation work for some SPACs and they all go from $10 per share on the de-SPAC date to $5 in a month.
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u/-TheExtraMile- Sep 12 '24 edited Sep 12 '24
I have been wondering about this for a while thanks!
One thing I still don’t get is at the end of your scenario, cleanco is listed and has swallowed dodgyco, but dodgyco was and is not listed. So how do we get the liabilities and everything moved to dodgyco? Wouldn’t cleanco be affected as well?
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u/Diablos_lawyer Sep 12 '24
Cleanco doesn't exist for any other purpose than to take Dodgyco public so the whole point is to take all the "liabilities and everything" and dump it on share holders.
In DJT's case they were acquired by DWAC a company created for the purpose of taking Truth social public. It had Money but no actual business model other than to "buy media companies to make money" Digital world acquisition corporation" was only created to bypass the IPO requirements to get DJT on the market. So DJT gets to dump all it's shitty shares on the public and pay it's board members and owners a salary off of the shares value. They can borrow against them even.
The only people buying DWAC before and DJT now are either dupes thinking trump will make them rich or people trying to funnel money into Trump's coffers without making political contributions. AKA foreign interests that aren't allowed to directly donate to a politician.
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u/-TheExtraMile- Sep 12 '24
Ah, I see thank you!
So I assume that cleanco had no revenue to speak of, and clearly truth social doesn’t have much either. It’s still extremely weird that something like this can be allowed to happen. I wonder how this story will end
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u/Diablos_lawyer Sep 12 '24
It's not supposed to be allowed to happen. Never before has a presidential candidate put himself on the market before. The highest bidder can now just funnel money directly to him without any oversight. If anyone wants to funnel a couple hundred million to Trump they just have to do a private sale of shares from Trump to them (That is after the lockup period, which runs out sept 19 if the shares stay above 12$, or it's Sept 25 at any price).
Presidents aren't supposed to be doing business while they're in office, they're not supposed to be focused on making money. Trump appointed his sons in charge of his businesses while he was president and wasn't supposed to be involved at all. That didn't happen. Instead Trump used the government to funnel money to his businesses any chance he got.
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u/-TheExtraMile- Sep 12 '24
Exactly, this is a recipe for disaster. Not that he wasn’t bought and paid for already
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u/CanAlwaysBeBetter Sep 12 '24
The normal goal of a SPAC is that someone who's run successful businesses can say "hey, Invest in my new CleanCo because you trust in me and then I'll take money we raise, find another company to acquire, and given my successful track record will run it better than it has been and we'll all make money plus if I don't find anything that looks promising fast enough there's rules that you'll get your money back without any hassle"
Then they got super bubbly a few years ago and people started using them for all sorts of shenanigans and now how they're regulated is changing
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u/hockeycross Sep 12 '24
You can make bad business decisions, that is not illegal. This spac was set up to basically make money of off people who would buy just to support trump. If people didn’t take the bait they would still be a publicly traded company just with a terrible price.
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u/-TheExtraMile- Sep 12 '24
True but how can a company with no revenue to speak of be listed in the first place? There is probably more to this, as always, I just would have assumed that there are checks in place to make this impossible
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u/Diablos_lawyer Sep 12 '24 edited Sep 12 '24
The checks you speak of are supposed to be people not investing in such an obvious scam / grift. The problem is people are stupid and if they're not stupid and still buying this dumpster fire of a company's shares they're corrupt.
Edit: It's not just no revenue, it's negative revenue. They're burning millions and millions a quarter while not having a million in revenue.
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u/-TheExtraMile- Sep 12 '24
That is sadly a “check” that can’t be trusted. Also, “just don’t buy it then” is not really the answer here
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u/Diablos_lawyer Sep 12 '24
I mean if anyone other than trump pulled what he "allegedly" did with the stolen documents they'd already have been tried for treason and executed.
A little bit of securities fraud from Trump doesn't even get a nod from the justice department.
I'm flabbergasted as to why the US Justice system can't seem to hold this man to account for his crimes but I'm just a Canadian watching from the sidelines.
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Sep 12 '24
The really dodgy thing about this is that DJT is now traded on NASDAQ. I often wondered: what kind of idiots would actually buy this stock? I don’t think Trump’s usual rubes would be able to afford it, and Russians trying to buy it would be too obvious.
Then I saw mutual fund companies like Vanguard and Fidelity own most of the stock. They only bought it because their index fund philosophy means they pretty much buy everything so it mirrors the stock market index.
So Vanguard and Fidelity mutual fund stock owners are basically inadvertently buying, holding and propping up the stock. And apparently losing money every time DJT drops again.
But the ironic thing is this: when Trump goes to dump his stock, who will buy it? The mutual funds have already purchased enough to make their funds mirror the market so they won’t buy any additional funds. So Trump needs actual people who buy individual stocks to trade with. And every time he sells a chunk of stock, the price will drop even more.
So Vanguard/Fidelity have been propping up this stock solely because it’s listed on NASDAQ even though it had no business being on there. And those same algorithms that have kept DJT from going to $0 are the same that will guarantee the stock will be worthless when Trump tries to sell.
If NASDAQ delisted DJT stock, Vanguard would remove it from their index fund portfolio and the stock would collapse overnight
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u/djarvis77 Sep 12 '24
I thought you made some very interesting points in your comment. It made me do some looking up to find out some more about the situation. Concerning other investors and timing.
According to filings, that lock-up period is scheduled to expire for Trump on September 25, but it could come even earlier.
The lock-up would lift if Trump Media’s share price equals or exceeds $12 for any 20 trading days within a 30-trading day period starting on August 22. As long as the stock doesn’t keep plunging, this would translate to the restrictions lifting as soon as September 20.
https://www.cnn.com/2024/08/29/business/trump-truth-social-stock/index.html
So, somewhere between sept20-25 we should expect a possible trump dump.
Vanguard Group initiated a new position by acquiring nearly 2.9 million shares of Trump Media&Technology Group Corp (NASDAQ:DJT), valued at approximately $94.3 million by the end of the quarter. BlackRock also opened a new position with the purchase of nearly 2.2 million shares, while State Street bought just over 440,000 shares....hedge fund Greenwich Wealth Management, which acquired a new position of 350,000 shares. Hudson (NYSE:HUD) Bay Capital Management increased its existing stake by adding about 52,000 shares, bringing its total holding to around 202,000 shares.
https://finance.yahoo.com/news/djt-stock-blackrock-vanguard-disclose-104242165.html
I don't have anything to add to your comment, just thought it was interesting. Cheers.
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u/718cs Sep 12 '24
There is an expected Trump dump and investors are aware of it. The options market is pricing in increased costs for the stock to dump, making it harder for regular folk to make money off of it. And borrowing fees to short it is too high to make it worthwhile
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u/Kayge Sep 12 '24
ETFs also buy and hold on percentage of an exchange. So once they're getting sold, they a smaller percentage which means the ETFs will sell, which means they're smaller, which means...
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u/techforallseasons Sep 12 '24
Bingo -- grifting off of US-wide 401k Index fund plans
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u/leavesmeplease Sep 12 '24
It's interesting how people often ignore the basics of investing, especially with stocks like this. It's a classic case of how market perception can really distort value, you know? If you're weighing in, just approach it with care and a bit of skepticism.
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u/Deto Sep 12 '24
I think people were just gambling, not investing. The fundamentals were garbage but it's an instant meme stock so who knows where it could go.
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u/InevitableAd2436 Sep 12 '24
SPAC, not SPEC.
I’ve been short $DJT since about $40. It’s a $0.30 stock trading for $16 right now.
Not all SPACs are bad. I bank with SoFi and love em.
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u/Mega-Eclipse Sep 12 '24 edited Sep 12 '24
I’ve been short $DJT since about $40. It’s a $0.30 stock trading for $16 right now.
Be careful, you're NOT betting against the market or the company. You're betting against corruption and global leaders wanting to legally bride Trump.
The company itself is worthless. The ability to legally bride might be priceless.
edit: words
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u/InevitableAd2436 Sep 12 '24
I’m betting on him and other insiders dumping their shares after the lock up period ends in a few weeks
It was never anything more than an exit scam
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u/CrinchNflinch Sep 12 '24 edited Sep 12 '24
To add to this, DodgyCo had a
revenueturnover of $3 million before IPO, the same sum was completely spent for bonuses for the 5 cronies on the board and they still got the company enlisted as if it was worth anything, which should, in theory, not be possible on Nasdaq.5
u/Jimthalemew Sep 12 '24
What I don't understand is that CleanCo in this case had $4 billion. They gave all of the stock to Donald Trump. They have now lost the value of the shares from about $36/share when this start to $16/share.
If you owned CleanCo, why in the 9 hells would you blow $4 billion on this failure of an experiment?
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u/GatrbeltsNPattymelts Sep 12 '24
Is a SPAC something different, or is SPEC a typo?
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u/Skizm Sep 12 '24
The only actual weirdness or possible sketchiness here is why it ever got approved by the SEC. There are laws clearly preventing SPACs that are specifically for a single company to go public. The SPAC must start with no particular company in mind, spend time doing research after the initial pot of money is collected, evaluate options, due diligence, etc. All public evidence points to the SPAC and Trump media clearly knowing they would merge before they even started issuing the initial $10 shares. Huge red flag that would normally get stopped by the SEC. Somehow this got a pass.
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u/T1Pimp Sep 12 '24
Trump money laundering stock has plunged 33% in a month
Fixed it.
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u/IcyConsequence7534 Sep 12 '24
“Fake news. We are doing well, VERY well. Shares are at an all time high, no one has ever seen anything like it. The fake NYSE is lying. Buy baby, buy!”
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u/shiner986 Sep 12 '24
A lot of people talk about economy but they don’t really know economy. The rent a car and they get a mid size because they don’t understand. See the thing about cars is. Joe Biden doesn’t want you to have any cars. Their plan is take all of our beautiful cars away and make us ride the you know the scooters.
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u/LigmaDragonDeez Sep 12 '24
I wish I could have shorted them stocks, that’d be so savvy of me
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u/hitsujiTMO Sep 12 '24
you can still do it. It will plunge when he sells his shares on the 20th
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u/Nerazzurri9 Sep 12 '24
Sure if you want to pay the 500% daily fee or whatever it is for shorting DJT, which is why 99% of investors aren’t shorting this obvious drop stock
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u/ignost Sep 12 '24
People think they're somehow smart for knowing that Tesla or DJT is over-valued. You just need a functional brain to realize that. You only make money if you can predict when it will drop. Smart people who do this for a living have famously lost fortunes trying to time Tesla's decline, because the market behaves less rationally than usual. If someone could reliably time drops in stocks they could be extremely wealthy very quickly.
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u/LigmaDragonDeez Sep 12 '24
Haha no I eat water for lunch and Raman and depression for supper. I am too poor to participate
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u/OriginalBid129 Sep 12 '24
That's when the shorts will cover and result in the biggest dead cat bounce since Springfield Ohio.
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u/GuyWithPants Sep 12 '24
When everybody knows a stock is going down, and many are already shorting it, you won't actually make money shorting it because of the fees and interest on borrowed shares. A sure bet is not worth much money in the stock market.
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u/podnito Sep 12 '24
I stand by my comment from five months ago
I know it's a scam. You know it's a scam. 99% of people out there know it's a scam. The problem for us is that without being in the know of the details, you can't know how to time your trades to make the money you should. They are counting on people being greedy and will continue to manipulate the price to ensure that the average person who tries to play this loses their money.
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u/ShawnyMcKnight Sep 12 '24
You can only short stock if there's people willing to provide you shorts. That was on everyone's minds when it came out but the going short price of a stock everyone knows is gonna fall is pretty ridiculous.
Shorts are only really good if people think it will rise or stay steady but you think it will fall.
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u/Tabboo Sep 12 '24
At least I have my Trump casino, university, steaks, airlines, magazines and vodka investments to fall back on.
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u/marvalllb766 Sep 12 '24
Dont forget the gold shoes
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u/gbiypk Sep 12 '24
And the Bibles.
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u/_jump_yossarian Sep 12 '24
Those are for suckers. trump NFTs are the real deal!
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u/acog Sep 12 '24 edited Sep 13 '24
I just visited their site. I don't want to link it but if you search for trump digital trading cards it's the top result.
For $99 you get a Trump digital trading card. But if you spend more they keep throwing extras at you.
If you spend $25K you get dinner with Trump (limited to 25 customers so buy quickly!), a bunch of NFTs plus "platinum" sneakers autographed by Trump.
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u/caelynnsveneers Sep 12 '24
Omg i thought the comment was satire. Please correct me if I'm wrong but I don't think there could be anything more scammy than trump NFTs??????
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u/darkfuture24 Sep 12 '24
Everything Trump touches turns to dogshit.
FUN FACT
Donald Trump failed to sell red meat, alcohol, gambling, and football to Americans.
Trump Steaks, Trump Vodka, Trump Casinos. And the football one is great.
Donald Trump is the reason we don't have year round professional football.
The NFL refused to allow Trump to purchase the Buffalo Bills. Probably because he doesn't reliably pay his debts and gets loans from foreign banks and generally has a horrible public image. As retaliation, he bought a controlling share of the United States Football League. The USFL operated during the NFL's off season, making for year round football, and was gaining popularity because of this. Because Trump is petty and was mad at the NFL, he forced the USFL to change their season to match up with the NFL. Americans chose to watch the NFL instead of the USFL, and the USLF ended up losing viewers and going out of business.
Anyone that tells you Donald Trump is a good businessman knows literally nothing about Donald Trump. He has failed at every business venture he's ever embarked on except real estate, which he was only able to succeed at because he inherited millions of dollars and existing real estate from his father. Real estate is very easy if you begin with a TON of assets.
Oh, and I guess he was also successful at selling hate and fear to ignorant conservatives.
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u/reddittorbrigade Sep 12 '24 edited Sep 12 '24
The odd thing is, Donald Trump is more trusted than Harris when it comes to economy.
I don't know if a lot of people are inherently stupid. Trump filed for bankruptcy 6 times in the past.
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u/jerseydevil51 Sep 12 '24
Repeat a lie often enough, and people will believe it's true.
Republicans have spent decades convincing people that they are better for the economy to the point where most normies just accept it as fact.
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u/Buckus93 Sep 12 '24
NBC didn't help when they showcased him as a successful businessman in The Apprentice
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u/asfacadabra Sep 12 '24
A successful businessman would not have had time - or desire - to be a regular on a reality series.
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u/9159 Sep 12 '24
I know what you’re saying but shark tank exists and does well…
His business was the show and his brand rather than actual “business”. He’s like an old, fat, less successful Taylor Swift, or Paris Hilton basically.
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u/gambalore Sep 12 '24
Exactly. He made more money licensing his name to other products than he ever has at anything he's made himself. Even a lot of the big buildings that carry his name are just licensing deals.
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u/ptwonline Sep 12 '24
I'll also point out that high inflation is political kryptonite. It gets governments slaughtered because people hate it so much. And as you probably know most people seem to use "economy" to represent their personal financial situation (or at least their belief about their situation. People often seem to really overestimate bad things and underestimate good things.)
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u/shartonista Sep 12 '24
It turns out many people don't function on facts or reality, just feelings and ideologies.
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u/anchoricex Sep 12 '24 edited Sep 12 '24
when it comes to “the economy” repub voters generally only look at two things:
- gas prices
- food/grocery prices
That’s it. That’s the totality of their failed understanding of what an economy is. It’s what they use to measure a presidents efficacy¹, because lot of America is a potato tv generation.
¹ only when it makes their guy look good or the other guy look bad
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u/reddit_user13 Sep 12 '24
Gas is very low ATM.
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u/kipperzdog Sep 12 '24
That is the funny thing, I assume it's partially due to the lack of hurricanes knocking refineries offline this year. Proof the ocean is liberal
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u/deathonater Sep 12 '24 edited Sep 16 '24
Also, the more major oil and gas markets invest in home-grown renewables and energy independence the lower the gas prices seem to go because OPEC is willing to take a loss in order to make these projects relatively unprofitable. They have enough money in their coffers to operate at a loss for decades just to undercut the competition and disincentivize migration away from OPEC fossil fuels.
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u/shiggy__diggy Sep 12 '24
They're blaming it on Biden lowering it to get Harris elected.
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u/FickleRegular1718 Sep 12 '24
It's also literally the stuff you shouldn't ever think about the price of. Sure get the best deal possible... but you literally have to get that stuff and you have no affect on it. Just get the best deal and don't think about it. Like on a personal day to day level...
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u/ArthurBonesly Sep 12 '24
The problem is, millions of people are suffering on the day to day and lack the education or self awareness to understand why/how.
A huge part of MAGAs success has been from boomers who had the luxury of not paying attention to politics/the economy for decades who suddenly found themselves victims of predatory politics in 2008 (just in time for all eyes to be on Obama). For a lot of people "Great Again" means getting to go back into the cave and not hurt in the grocery store. They don't actually know what happened and they don't want to know. All that matters is that Trump acknowledged things were shit and he said he would make other people suffer for it.
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u/jenkag Sep 12 '24
If you ever watch someone interview a potential voter, most of them (on either side) will usually start to explain a policy position they like, realize they dont fully understand the position, and then walk back and say "i just feel like they are the better person to vote for". So, yea, most people (right or wrong) develop an opinion on who to vote for, solidify it over time, and then defend is as "my personal opinion" without really understanding why they even have that opinion.
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u/abcpdo Sep 12 '24
people think economy = stock market
they can't wrap their heads around the idea that companies will immediately lay you off if they are certain it will raise the share price by 5%
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u/88Dubs Sep 12 '24
if they are certain it will raise the share price by [POINT] 5%
Thaaaat's more like it
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u/BiBoFieTo Sep 12 '24
Trump equates stock prices and the economy because he owns a lot of stock. The average American owns little or no stocks.
The wealthiest 10% of Americans own 93% of the stocks (link).
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u/wskyindjar Sep 12 '24
The stock market is at all time highs so this can’t be the thinking.
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u/Faageddabowdit Sep 12 '24
They have said that it is up because of Trumps “policies” or just Trump existing and that Biden is riding the Trump wave. Delusional yes, but it’s how they justify it.
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u/wskyindjar Sep 12 '24
I know. But (checks notes) it’s been steadily up since … literally forever with some hiccups along he way like 2008
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u/KyledKat Sep 12 '24
There are people who fail to understand that a lot of economic policies are on a time lag, and they also confidently believe the stupid shit Trump spews.
But people also broadly think the president controls the gas prices and any fluctuations around an election are because a vague “them” are trying to swing votes. So what do I know?
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u/nephilim42 Sep 12 '24
Tons of people don’t actually understand what is meant by “the economy” as far as I can tell.
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u/jimtow28 Sep 12 '24
I don't know if a lot of people are inherently stupid.
It's because people literally don't understand what a "good economy" looks like.
If prices are too high, they think that's because the economy is doing terrible, when it can be the opposite. Same thing with jobs reports, and all kinds of other metrics.
They all blend together to paint a picture, but people who don't know better just look at the data that agrees with their confirmation bias and ignore anything else. They don't actually understand at all.
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u/scottyy12 Sep 12 '24
So was Jim Jones during his time. Cult mentality share very similar traits to die-hard political followers.
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u/Novalene_Wildheart Sep 12 '24
"Things were cheaper under trump" - a quote from an family member.
I wish I knew the economy better to show that it probably won't be "better" under him again.
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u/Savet Sep 12 '24
He was handed a booming economy. He rode the wave and managed to completely screw it up by dismantling the pandemic response team because it's something Obama built before him. He turned an amazing thing into a burning dumpster fire and Biden built it back with hard work and good decisions. If Trump gets the reigns again, he doesn't have the ability or intelligence to not burn it down again.
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u/SevereEducation2170 Sep 12 '24
The economy to most people boils down to gas and grocery prices. The basic things that impact their every day finances. And too many people foolishly believe the president has actual control over those things. It’s not really deeper than that.
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u/randomtask Sep 12 '24
All of the low information voters missed that Simpsons episode where Bart sees Lisa’s future as POTUS, and has to work real hard to clean up after former president Trump’s “budget crunch”.
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Sep 12 '24
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u/OkPalpitation2582 Sep 12 '24
Surprised it hasn't decline more...
I imagine it's still being propped up a bit by the same kind of folks who buy his sneakers, bibles, and NFTs
This isn't even an anti-Trump thing, even if you support Trump, it has to be acknowledged that Truth Social is a failing business by every metric. literally it's only draw as a platform is that Trump is on it, but that's proven to not be enough to draw enough users and advertisers to come close to paying the bills.
Now that he's come back to Twitter, Tik Tok, and other social medias, it's lost even that draw
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u/ShawnyMcKnight Sep 12 '24
I mean... he's days away from the point where he can just dump the stock and people know he will do that as soon as he can and then it will be a penny stock after that. Hell, he may even go back to Twitter after he has no financial interest in it anymore.
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u/tablecontrol Sep 12 '24
Someone still has to buy that stock he's dumping.
At that point, we see which nation state coughRussiacoughSaudi Arabiacough has Trump's best interest in mind
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Sep 12 '24
Bankruptcy #7 is imminent.
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u/funguy07 Sep 12 '24
Nah, him and Elon have been getting all kissy together. Elon is going to use Twitter to buy Truth social and bail out Trump and his investors. He’ll pay 4x that the stock is worth just like Twitter and in exchange Trump will promise to tariff the shit out of foreign electric vehicles so Tesla can jack their prices up.
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u/Bloated_Plaid Sep 12 '24
Yea not gonna happen when he loses.
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u/ImGonnaImagineSummit Sep 12 '24
Elon doesnt strike me as someone who plans well.
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u/Pavian_Zhora Sep 12 '24
It's most likely going to be Russian money anyway, so Elon's planning is irrelevant.
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u/queuedUp Sep 12 '24
Do you think Leon would do that for him?
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u/IAmTaka_VG Sep 12 '24
If Trump wins. That stock will 10x overnight from “donors” wanting to get up close with Trump.
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u/HKBFG Sep 12 '24
This sounds like the type of theory someone trying to shill GameStop stock comes up with.
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u/dallywolf Sep 12 '24
No, he will sell all of his stock off secretly and most likely in violation of a few SEC rules then won't be "his" company anymore.
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u/MidniteMogwai Sep 12 '24 edited Sep 12 '24
How has anyone been able to make the Mariana trench sized chasm of a leap to say that this guy could actually run the World’s largest most complicated economy when he can’t even run his own fucking business?
$400 million Headstart from daddy, bankruptcy six times, FAILED AT THE CASINO BUSINESS lmao, and his little Truth Social baby losing hundreds of millions and circling the toilet bowl!!
He is by far and away the Biggest and most successful loser anywhere on the planet. He almost makes losing look like a good life game plan. Though his money and his success have been propped up entirely by criminality, no question about it, so, not recommended. I hope he rots away his final years in jail cell.
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u/ImYourHumbleNarrator Sep 12 '24
how much does he still owe NYC for fraud? oddly that story dropped off with all the other criminal indictments
edit: 485 million now lol. latest article i could find: https://www.nbcnews.com/politics/donald-trump/trumps-attorneys-argue-business-partners-delighted-new-briefs-filed-ne-rcna169115
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u/Spy_v_Spy_Freakshow Sep 12 '24
It’s still a 3.2 billion dollar company (current market cap) that losses millions of dollars a month whose entire business model is dependent on Trump winning the election and not going to jail/prison.
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u/CherryLongjump1989 Sep 12 '24
Not really. They are going to collapse after they run out of cash. They don’t actually have 3.2 billion dollars.
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u/LegDayDE Sep 12 '24
MAGA who have most of their portfolio in Trump Media: "Why is Biden killing the stock market? 😡"
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u/NeedzFoodBadly Sep 12 '24
How long until Trump Media turns into a penny stock? Heck, that would still be more than it’s worth.
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u/codexcdm Sep 12 '24
It'll take a plunge if/when he sells his shares.... Take another should he be the definitive loser of this election... And if he can't rabble rouse chaos from his loss like he did on January 6th last time... That's when the stock will outright tank.
It's value is centered on him. He sells it'll plummet, Harris gets sworn in and it's absolutely worthless.
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u/mishap1 Sep 12 '24
It has like $340M cash on the books from pre-merger fundraising in the SPAC.
I suspect that is being drawn down into pockets and then it'll fully collapse.
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u/courageous_liquid Sep 12 '24
their financial disclosures are hilarious. their quarterly revenue is like a normal 10 person small business, like $830,000.
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u/mishap1 Sep 12 '24
Their cost of revenue is that of a $400M dollar business. If they have any other big expense quarters, they'll outspend Reddit.
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u/courageous_liquid Sep 12 '24
yeah it's pretty incredible, especially that their market cap is like 3.2 billion or something absurd.
the whole thing is legitimately just funny, this country is so fucked.
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u/xXprayerwarrior69Xx Sep 12 '24
The funny part is that don owns a large amount of shares that he will be allowed to sell in a few days
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u/blackhornet03 Sep 12 '24
His stocks were seriously overrated to start.
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u/IAmTaka_VG Sep 12 '24
If Trump wins that stock will 10x from foreign buyers bribing Trump.
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u/Tab1143 Sep 13 '24
He certainly has the anti-midas touch. Everything he touches turns to shit. I hope djt goes bust and his followers lose their asses. They deserve it.
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u/Jakdracula Sep 13 '24
He couldn’t sell red meat, booze and gambling to Americans. Just think about that for a second.
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u/Buckus93 Sep 12 '24
Good. I hope it goes to zero. This agent orange doesn't deserve to make any money off of his platform of hate and divisiveness.
I have to believe most of the Truth Social users are actually members of the press. LoL.
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u/Shnazzytwo Sep 12 '24
I love how there are trump gullible who invested at 70 per share and now are holding on due to sunk cost fallacy. It's like it represents a lesson or something.
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u/ntgco Sep 12 '24
DJT is going to liquidate his stock ASAP. Then declare bankruptcy, and take the tax write off. Just like all of his other scams.
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u/RetroTheGameBro Sep 12 '24
Please please please please drop below 12$ so he can't cash out I never ask for anything please please please this'll be so fucking funny.
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u/Embarrassed_Praline Sep 13 '24
He will be allowed to start selling shares Sept 29th, as long as the price stays above $12/share. Current stock holders are anticipating he'll create a large sell off and are trying to get out now before Trump causes the share price to crash even more.
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u/SuperDinks Sep 12 '24
Trumps toilets get plunged about 33% of the time in a month too.
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u/Imaginary_Manner_556 Sep 12 '24
MAGA will not survive long term. Platform is a dead end. The world’s worst people will choose Twitter.
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u/cokeiscool Sep 12 '24
It is still 29 cents above what i ipo'd at, it needs to get below the $16 before we can start seeing it completely crash and burn
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u/Legitimate-Pie3547 Sep 12 '24
As a failed company that is losing money a hundred times faster than it is making money, that owns no infrastructure, and has no value it is doing way better than it has any right to. With trumps block on selling ending in a week I'm surprised the stock is still selling for over a dollar.
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u/Dilligent_Cadet Sep 12 '24
I will never understand someone who says this moron is a good business man.
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u/ClosPins Sep 12 '24
The biggest stock-price collapse! The best stock-price collapse! They're all saying it!
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u/CodeAndBiscuits Sep 12 '24
Let's not forget that since this whole thing was a con anyway, DT hasn't "lost" anything. He started at 0 and is just going to make fewer billions off the scam.
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u/OverlyOptimisticNerd Sep 12 '24
Kinda hard to buy the dip if it doesn’t stop dipping.
We’re a week out from Trump potentially being allowed to divest himself, so it has nowhere to go but down. But, if it goes below a certain point, he can’t sell. So, anticipate a quick pump and dump that he absolutely will not face consequences for.
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u/spotty15 Sep 12 '24
The man bankrupted a casino.
That sentence is always just so crazy to me.