Trump Media is "a scam," and people buying its high-flying stock are "dopes," IAC Chairman Barry Diller said on CNBC when asked about the social media company backed by Donald Trump.
"They're buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop," Diller said.
Trump is the majority shareholder in Trump Media, the owner of the Truth Social app that he frequently uses.
Trump Media stock surged after its shares began being publicly traded following a merger with a shell company.
Trump Media is "a scam," and people buying its high-flying stock are "dopes," IAC and Expedia Chairman Barry Diller said Thursday in a scathing takedown of the social media company whose majority shareholder is former President Donald Trump.
"I mean, it's ridiculous," Diller said on CNBC's "Squawk Box" when asked about Trump Media. "The company has no revenue."
"It's a scam, just like everything he's ever been involved in is some sort of con," he said of Trump.
A Trump Media spokeswoman, in response to Diller's comments, said, "It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression that contradicts the narratives they want to enforce."
CNBC has requested comment from a spokesman for Trump, who is the presumptive Republican presidential nominee.
When Trump Media began trading last week with the ticker DJT, its share price rocketed up about 50% to close to $80 before settling down. As of Thursday morning, Trump Media shares were selling for nearly $47.
That gives the company a whopping $6.4 billion market capitalization despite the fact it had just $4.1 million in revenue last year, and its business is focused on the Truth Social app, which has significantly fewer users than major social media platforms.
Trump Media on Monday reported it had net losses of $58 million in 2023. He compared the price run-up of Trump Media to the "meme stock" frenzy in 2021, when the price of GameStop soared to nearly $500 per share and AMC Entertainment, a movie theater company, saw its share price skyrocket to more than $700.
GameStop shares were selling for less than $12 per share in early trading Thursday morning, and AMC shares for just more than $3.
"I think they're dopes," Diller said when asked why people are buying the company's stock.
"I mean, who would buy a company that literally, what does it have, $30 of revenue? Who could put a value on that?" Diller asked.
"They're buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop, whatever."
"It's stupid. Stupid stuff," he said.
Asked if Trump Media could ever become a bigger business than it is now, particularly if Trump is elected president later this year, Diller flatly replied, "No ... no."
"Look, he's only interesting now because he's out there entertaining the folks," Diller said. "I hope if he gets elected he just plays golf for four years."
I think people complain about Trump's "cons" because they threaten many of those people's more sophisticated cons. They are afraid he's going to upset their house of cards.
To me, It is rather sad how many people support the DJT fraudster. His cons are amateur hour. Unfortunately, it would seem that there are much more effective con artists at work and a whole lot of gullible marks.
You mess with the "Bull," you get the horns. Fiercely Independent.
I'm simply looking for clarification because what you posted was very open ended and it's hard to tell exactly what it is you meant by your post. They certainly aren't buying the stock because the value of it lines up with the price of the stock.
Intoducing for The Cleveland Browns, Quarterback Deshawn "The Predator" Watson. He will also be the one to choose your next head coach.
Trump Media debuted on the Nasdaq under the ticker DJT on March 26.
Trump Media & Technology Group stock fell more than 10% on Friday, hitting its lowest point since debuting as a publicly traded company last week.
Shares in Trump Media, the company behind former President Donald Trump’s social media platform Truth Social, traded at $41.08 mid-afternoon Friday, giving the company a market cap of $5.62 billion — a more than $2 billion drop from its first trading day. The stock was trading at its lowest level since Trump Media entered the public market following its merger with Digital World Acquisition Corp., a special purpose acquisition company ([censored]),
Trump Media debuted on the Nasdaq under the ticker DJT on March 26. The company quickly shot to a more than $8 billion market cap, a rise analysts said had little to do with its underlying business and more to do with support for Trump. Several analysts lumped Trump Media in with so-called “meme stocks” such GameStop, AMC, and Reddit.
Meme stocks refer to company shares that become wildly popular online and are traded feverishly by retail and individual investors, sending prices soaring regardless of the company’s actual operating results or prospects.
But Trump Media stockalready plunged more than 20% earlier this week. That came after the company reported a loss from operations of almost $16 million, plus interest expense of $39.4 million, while bringing in just $4.1 million in revenue, according to a Securities and Exchange Commission filing. The results compared with a loss from operations of $23.2 million, plus interest expense of $2.0 million, on $1.5 million in revenue in 2022.
Trump Media disclosed in the SEC filing that it “lacks the financial resources it needs to sustain operations for a reasonable period of time,” which it defined as one year from Monday, raising “substantial doubt” as to its ability to continue operations. The company said it expects to continue incurring operating losses and negative cash flow “for the foreseeable future.”
Anybody hear of some lawsuit between Trump media and truth over who has claim to a certain amount of shares?
Details are fuzzy.
“To announce that there must be no criticism of the President, or that we are to stand by the President, right or wrong, is not only unpatriotic and servile, but is morally treasonable to the American public.”
Yeah I’ve been loosely following it. Basically he’s trying to squeeze out the other initial investors who helped get it off the ground. Basically Trump just being Trump.
Blue ostriches on crack float on milkshakes between the sidewalk titans of gurglefitz. --YTown
Yeah I’ve been loosely following it. Basically he’s trying to squeeze out the other initial investors who helped get it off the ground. Basically Trump just being Trump.
proving once again, if you get in bed with Trump you will, in the end, get screwed. No kisses and hugs involved.
#GMSTRONG
“Everyone is entitled to his own opinion, but not to his own facts.” Daniel Patrick Moynahan
"Alternative facts hurt us all. Think before you blindly believe." Damanshot
No idea if this is a scam or not.... Doubtful it would seem to me. Over valued, definitely. Illegal, No. People who will make bank .... Trump. People who will lose money .... Fools blindly handing over their $$$$. Probably the same fools who believe the drivel posted on the platform. The same people who hand over money for the snake oil Trump pushes whether its MAGA hats made in china or bibles or donations to build wall.
Honestly i could care less. I don't like Trump and think him a corrupt grifter but if he makes money off others because he's popular .... Seriously i could care less.
I do care that he's patently unfit to run for office. I care that he's a danger to America. In a two horse race with the other candidate virtually unelectable based on his fading memories and ability to talk intelligently for more than a few minutes (it would seem) .... Trump is still the guy that is 100% unelectable and unfit to be POTUS in my opinion.
I'm sure there are Dem candidates I could vote for over either of these fools. I know at least two Republicans I'd vote for over these two. And yet here we are. It defies belief
The more things change the more they stay the same.
That’s the perfect summation of my thoughts as well. Well-said.
I will say, however, that saying such things brands you as a “libtard” as I have found out. Let me know if you get placed in the club, too. Meetings are every other Thursday at a fair trade coffee house.
Last edited by dawglover05; 04/07/2401:43 PM.
Blue ostriches on crack float on milkshakes between the sidewalk titans of gurglefitz. --YTown
Who didn’t see this coming? Trump corrupts and bastardizes everything he touches. Wait until we see what he does to the RNC. They’ll be broke for a decade or more.
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