The bigly truth
Donald Trump’s social media platform has gone public. A host of problems should scare sensible investors away
📱 Finance | An overvalued SPAC
According to an analyst at the Financial Times, a newspaper, “A vibes approach to valuing Trump Media is most appropriate.” If that's the case, then the vibes must be good. Investors have given Donald Trump's freshly-listed social media company a euphoric $10bn market capitalisation. It seems Mr Trump isn’t the only one with an inflated sense of self-worth. The users of his social media app must have one, too. They must reckon they're six times as valuable as the average user of one of Meta's apps. After all, they’ve bid up DJT, Trump Media's egotistic stock ticker, so much that the valuation implies their accounts are worth $2,000 each. No one in their right mind would think Truth’s users are worth that much, except maybe the users themselves. Still, investors would be wise not to follow them. They should avoid this steaming hot mess to keep their portfolios intact.
First, investors should avoid Trump Media because the valuation is outrageous. The curren…