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Trump Media -- Still a Meme

So Today, Easter Monday, the company released its full-year financials.  total revenues of $4 million and profits (actually losses) of $58 million.  Like all stocks that are held by air, the price fell on the news, by 24%.  None of that activity was short interest, it is not yet possible to short the stock, so that was "real" interest, sellers decided that the news was even worse than they anticipated because for the 9 months, Truth Social made $3.5 million in revenues, and in the last quarter only $0.5 million...the implication is that revenues were front-loaded (you can do that) or interest by users had dropped (which is also possible).  No one knows, the market is too thin to say anything.  Extrapolating Q4 revenues means that they will drop in 2024 by half --- again this is meaningless.   The company is still worth something like $4 billion.

As for the future, it is hard to say where the stock will go, tomorrow it could be up 30%, and that's the problem with Meme stocks.  GameStop was the same, quarter after quarter of bad results yet investors would not sell, waiting for the bigger payday.   

My only advice, is if you buy this stock, and I don't think it's a good idea, make sure you are comfortable with losing it!   The odds are not in your favour...but I could be wrong.

Note:  People, if you think this is advice to buy stocks...think again.  First of all, it should be read with a dose of humour, also read the last line carefully, any advice that says the odds are not in your favour should be read with an understanding that this investment is a real bet.  The bet that a bigger idiot will buy an unlikely outcome...

Note2:  I was not aware but about $3 million a year is compensation for the company's senior management, all Trump supporters (which is fine) but also some directly working on Trump's campaign.  Which is astounding (some of the money is in the form of promissory notes).  The company currently has cash of about $277 million.  Finally, and this is the coup de grace, the auditors, a small firm in Colorado (3rd auditors in a year) gave a qualified opinion and expressed doubt that the company could remain a going concern.   Any auditor's comment on the viability of a company they audit is a massive red flag. BTW this morning (NY time) the stock rose by 35%... 

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