Tornado Alley (PROG)

[fuagf]

Excerpt for a bit of detail: DJT Stock Alert: Truth Social Lost $58 Million in 2023

Guess the asshole still stands to gain a hell of a lot of money from his financial scheme. Unless
his new board does not bow to his bidding to change the rules so he can sell before the crash.

[...]

DJT Stock: Truth Social Lost $58 Million in 2023

So, what exactly is TMTG spending its money on? Sales and marketing expenses more than doubled to $1.27 million, while research and development and general and administrative expenses fell year-over-year.

However, the main culprit is interest expenses, which is the amount of money paid toward debt borrowings. That grew to $39.42 million from $2.03 million a year ago, marking a rise of 1,834%. As of Dec. 31, TMTG had $3.36 million of total assets and $70.12 million of total liabilities. Its current liabilities, or liabilities that must be satisfied within a year or the span of a normal operating cycle totaled $65.87 million, of which $42.41 is attributed to convertible promissory notes.

TMTG has also noted that its operating losses raise substantial doubt about its ability to continue as a going concern. Loss from operations in 2023 was $15.96 million compared to $23.24 million in 2022.

According to Business Insider, DJT stock has a high probability of crashing, given its outsized valuation. It notes that DJT is currently trading at around a 2,000x P/E ratio. That compares to the S&P 500’s P/E ratio of 23x.

BI also points to previous right-leaning special purpose acquisition companies (SPACs) that have witnessed a reduction in price, such as Rumble (NASDAQ:RUM) and Black Rifle Coffee (NYSE:BRCC).

On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Your -- https://markets.businessinsider.com/news/stocks/djt-stock-alert-truth-social-lost-58-million-in-2023-1033211752