Why people are buying DJT stock

Trump Media stock has declined by about 2/3rds since it reached the first day peak. Ex-President Trump has personally lost $3.3 Billion of paper wealth.
In response DJT has announced a massive stock sale, which just pushed the stock down further, while Trump has personally appealed to his fans to buy more.

Donald Trump on Friday urged his followers to support his social media app Truth Social, as its parent company’s stock continues to sink lower.

Trump in a post on that app said he believes Truth Social embodies the political “movement” behind his “Make America Great Again” presidential campaign slogan, adding that “it shows the Spirit and Love of our Country.”

“If people who believe in putting America First and want to Make America Great Again, support TRUTH,” Trump wrote.

Unfortunately, Trump's fans believe him. They are buying it not because its a good investment, but to "own the libs".

Jerry Dean McLain first bet on former president Donald Trump’s Truth Social two years ago, buying into the Trump company’s planned merger partner, Digital World Acquisition, at $90 a share. Over time, as the price changed, he kept buying, amassing hundreds of shares for $25,000 — pretty much his “whole nest egg,” he said.

That nest egg has lost more than half its value in the past two weeks as Trump Media & Technology Group’s share price dropped from $66 after its public debut last month to $22 on Tuesday. But McLain, 71, who owns a tree-removal service outside Oklahoma City, said he’s not worried. If anything, he wants to buy more.

“I know good and well it’s in Trump’s hands, and he’s got plans,” he said. “I have no doubt it’s going to explode sometime.”

For shareholders like McLain, investing in Truth Social is less a business calculation than a statement of faith in the former president and the business traded under his initials, DJT.

But for some Trump investors, the stock is a badge of honor — a way to show their devotion beyond buying Trump merchandise, visiting Trump golf courses or donating to Trump’s presidential campaign.

It doesn't matter how much faith you have in Trump, the business model of DJT doesn't work.

The company lost $58 million last year on $4 million in revenue, less than the average Chick-fil-A franchise, even as it paid out millions in executive salaries, bonuses and stock.
7 users have voted.


usefewersyllables's picture

the house always wins.

There is some saying about a fool and his money, but somehow I can't quite put my finger on it right now...

7 users have voted.

Twice bitten, permanently shy.

@usefewersyllables but there are so many people buying it in spite of the fundamentals. At least with Gamestop there was a strategy that I understand.

5 users have voted.
The Liberal Moonbat's picture

@gjohnsit How did you fare, if so?

1 user has voted.

In the Land of the Blind, the One-Eyed Man is declared mentally ill for describing colors.

Yes Virginia, there is a Global Banking Conspiracy!

@The Liberal Moonbat I stayed out of gamestop, because even though I understood it, it was still speculation.

BTW, DJT rallied 30% in the last two days. Probably shorts covering and taking profits, although that's just a guess.

1 user has voted.