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."
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
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.
