Trump Media Technology Group continues to soar, with a market capitalization of over $8 billion and a market sales ratio of more than 2,000 times. Trump owns about 78.8 million DJT shares, with a 60% shareholding ratio and a value of about 5 billion US dollars.
Trump's social media company$Trump Media & Technology (DJT.US)$Following a close increase of more than 16% on the first day of listing, US stocks surged 14% to 66.22 US dollars overnight, bringing the company's market value to about 8 billion US dollars. According to estimates that Wednesday's closing price and Trump's holding nearly 60% of the company's shares after listing, its personal book wealth rose to 7.1 billion US dollars.
According to the Forbes Billionaires List, Trump's total net worth nominally increased by nearly $700 million on Wednesday, making him one of the 400 richest people in the world.
According to reports, Trump owns about 78.8 million DJT shares, with a shareholding ratio of 60% and a value of about 5 billion US dollars. However, these are just book gains because Trump can't sell these shares during the six-month ban.
Although the stock price is like a roller coaster, Wall Street's current valuation of DJT has reached 11 billion US dollars, which is equivalent to nearly double the closing price on Wednesday. More notably, Wall Street said bluntly that there is no rationality behind DJT's valuation.
If you look at the fundamentals, based on Wednesday's opening price, DJT's market sales ratio (the ratio of the company's market value to revenue) is over 2,000 times. Although technology companies usually have high valuations, this ratio still seems extremely unreasonable. You need to know Nvidia's market-sales ratio is 38 times; when Meta first went public in 2012, its valuation was 12.5 times its revenue.
According to financial documents, DJT's revenue for the first three quarters of last year was only 3.4 million US dollars, while losses reached 49 million US dollars. The recently listed “American Tieba” Reddit had revenue of about US$804 million in 2023, while the valuation reached only US$6.4 billion.
The only analogy with DJT is that after Facebook bought WhatsApp, which had almost no revenue, for $19 billion, WhatsApp had 450 million users at the time. However, TMTG did not disclose the number of active users, only claiming 9 million registered users. Based on this calculation, each registered user is worth as much as $1,067, while Facebook's monthly active user valuation is only $422.
Meanwhile, DJT's losses have accumulated over time, and its main product, Truth Social, has fewer and fewer customers. Investing Group leader Jonathan Weber warned that DJT's rise will be driven by speculation until the social media platform can show resilient user growth and improved financial conditions.
DJT also warned that it is expected to experience “significant” losses in the foreseeable future, adding that it may never generate enough revenue to be profitable.
Editor/jayden