The IT Nerd

I’ve been saying for a while that Trump Media was a meme stock. Meaning that the stock of the company that owns Donald Trump’s barely relevant social media platform Truth Social was trading way above its actual value and would eventually fall back to earth and do so in a brutal way. In the process financially hurting individuals who didn’t get the memo.

It now appears the falling back to earth part in a brutal way is happening:

As I type this, the stock over the last month has fallen by a third of its value. In the process, wiping out millions of dollars from the portfolios of anyone who is unfortunate enough to hold the stock.

What’s even more interesting is that Trump isn’t allowed to sell or borrow against any or all of his $2.3 billion stake until September 25th. But if at time he does decide to sell or borrow against that stake to say fund his presidential campaign, pay his legal bills, or settle any of the numerous lawsuits that he’s lost, he could crash the stock. And then it’s likely game over for the stock and Truth Social.

But why is the stock tanking like this? Well, the easy explanation is that Trump is so toxic that it’s killing the stock value. But I think there’s more to it than that. Insiders are selling the stock at a significant rate. For example:

• Phillip Juhan, Trump Media’s chief financial officer and treasurer sold $1.9 million worth of stock last week.
• Trump Media’s general counsel Scott Glabe, chief operating officer Andrew Northwall and chief technology officer Vladimir Novachki made smaller sales last week.
• Devin Nunes, Trump Media’s CEO and president, sold $632,000 worth of stock last week.

Note that all of this happened last week. Clearly something is up and they made the decision to get their money out. Because the smart rats leave the sinking ship first. And Trump Media is truly a ship that is sinking fast. The question is, where’s the bottom going to be?

This entry was posted on August 29, 2024 at 1:48 pm and is filed under Commentary with tags Donald Trump, Truth Social. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.