Trump’s Social Media Company Posts Q1 Revenue of $770,500 and Net Loss of $327.6 Million
Trump’s Social Media Company Posts Q1 Revenue of $770,500 and Net Loss of $327.6 Million
Trump Media and Technology Group reported $770,500 in revenue for the first quarter of 2024 and a net loss of $327.6 million.
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Nothing suspicious about this stock at all, no sir!
You see that dip, where the stock starts to go back up? You know what Truth Social did that reversed that trend?
Not one god damned thing.
But you know what else was going on then? That was right in the middle of the "if DJT stock stays above $30/share for 20 out of 30 days, Trump gets a shitload more money" window. Almost like someone started manipulating the stock so Trump would get money and maybe owe some favors...
Look at their 10Q. The majority of their loss was from revaluation of derivative liabilities. If anyone with more Equity Research experience cares to look at p. 14 and care to explain further.
It seems like bullshit to me
I’m no money scientist, but is that the thing where they decide it’s worth more? So they can sell it for more money, the thing Trump has been known to do? That thing?
I'm not familiar with the mechanics, but the specific derivative valuation method was listed at Level 3 which is used for transactions that rely on unobservable factors to evaluate value.
Level 1 derivatives are like interest rate swaps where there is a liquid exchange market that can easily be valued.
Level 2 derivatives are like Futures contracts where the terms may be more bespoke, but value can be derived from an established market.
Level 3 derivatives I've seen described in textbooks as marked to magic lol. Meaning there is no liquid market to mark the value to.
Somehow, they categorized an instrument that was used to fund the SPAC as a Level 3 derivative. That on surface sounds incorrect for an option or debt conversion of a publicly traded stock.
This should trigger an audit or something by the regulator, but again, my area of expertise is in Corp Finance, not Treasury.
Jeff Yass' hedgefund is playing a big role in this