Trump's biographer says Truth Social investors will be 'wiped out' if they don't sell
Investors in Truth Social, if they don't sell now, will eventually be "wiped out," according to Donald Trump's own biographer.
Trump biographer David Cay Johnston, who has covered Trump's taxes and financial matters for years, appeared on MSNBC on Saturday, where he was asked about recent news involving the former president's social media company that went public. Specifically, the host asked about reports that Trump Media reported a net loss of nearly $330 million for the first three months of 2024, at a time when the stock was still rising.
"How big a problem is this? Can you explain for some layman's terms, quickly, how losing millions on thousands of actual revenue, how that even works?" the host asked. "Is that the stock that still has a huge market value? Is it really valuable? There's a lot of questions here."
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Johnston replied that "it's not at all valuable."
"And the people who own it at the current price, if they don't sell out, will eventually be wiped out," he said. "The 300-plus million is not a cash charge, but even so, the company is losing money hand over fist and its revenues are barely in the millions of dollars. So there's no support here for a company worth four, five, six, at one point $8 billion. This is all fans of Donald Trump and others hoping to exploit the company and in some cases to sell it short so they can collect when the price falls to near zero."