How is Trump's Phony Media Company "Worth" $7 Billion?
What A Day
What A Day
4.6 • 12.6K Ratings
🗓️ 6 April 2024
⏱️ 31 minutes
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Summary
Why on earth is Wall Street valuing Donald Trump’s little social network at $7 billion despite having few users, scant revenue and tremendous losses? This week on “How We Got Here,” Max and Erin take stock of how wonky and meme-ified investment markets have become, what this means Trump’s legal bills, and why “DJT” shares would never be this high if not for Netscape and GameStop.
SOURCES
Trump Media’s Business Doesn’t Matter - Bloomberg
Pump and Dumps Are Legal Now - Bloomberg
Jonathan Lebed's Extracurricular Activities - The New York Times
Trump Media stock plunges as 2023 Truth Social loss put at $58 million
Opinion | ‘Dumb Money’ and the Meme Stock Phenomenon - The New York Times
Meme Stocks Are Back. Here’s Why Wild Trading May Be Here to Stay. - The New York Times
Trump Stock Takes Washington by Storm - WSJ
Transcript
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| 0:00.0 | Aaron can you do some back of the napkin math for me? |
| 0:02.2 | Napkin math is the only thing keeping the napkin industry alive so I am glad to do napkin |
| 0:06.7 | doing your part okay how is a company with only four million dollars in revenue |
| 0:11.6 | against 62 million million in expenses. |
| 0:14.6 | Okay, plus $4 million, minus $62 million |
| 0:17.8 | equals $58 million in losses, not great. |
| 0:21.8 | Okay, but on top of that, there's also no real business plan, there's almost no assets, |
| 0:25.6 | there are almost no paying customers, and their financial disclosure include what's called |
| 0:29.6 | a going concern notice. |
| 0:31.0 | Which is Accountants speak for saying that the company |
| 0:33.2 | cannot sustainably continue as it has been. Okay so run all those numbers. |
| 0:37.4 | Okay. You used to work in finance. How much do you think that company would be |
| 0:41.2 | worth if it went public this week? I mean it sounds like you're describing a think that's |
| 0:44.0 | sounds like you're describing a failing media company. |
| 0:46.0 | That's a really good guess that's exactly what it is. |
| 0:48.0 | Well when Buzzfeed went public a couple years back |
| 0:50.0 | it claimed a valuation of 1.5 billion dollars, the try guys tried it, but traders didn't agree |
| 0:56.4 | and pushed the share price to a fraction of that and Busfeed's business had better numbers |
| 1:01.0 | than whatever garbage fire company you're talking about. |
| 1:03.5 | Okay, okay. So what's your guess? |
| 1:05.1 | Okay, how much do I think it's worth? Maybe 50 million? A bucket of magic beans? |
| 1:08.9 | A limited edition Princess Diana Beanie baby with the tags attached and in mint condition maybe |
... |
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