DJT, the Truth Social meme stock took a big hit yesterday after their latest filing revealed (shock!) that the shitpile might go out of business. DJT fell from a high of around $75 to $45 yesterday, and now it’s trading a little over $50. There were a lot of stories out about how the stock “crashed” and that we were entering the dump portion of our pump-and-dump program. I think that’s premature. If you look at the most famous meme stock, GameStop, you can see there were a massive number of ups and downs before the sustained down. The big uptick in this chart was at the beginning of 2021:

I don’t think DJT is going to last as long as GME, but there’s no reason that it couldn’t go for quite a while, because the “fundamentals” are similar. The most important “fundamental” is that people are buying the stock for a reason extraneous to its underlying value (fetishistic fealty to Trump), and the second fundamental is that a number of idiots who never buy stocks are buying into this one.
The SPAC that became DJT had $300 million when they combined, so no matter how badly Truth Social shits the bed, there’s plenty of cash to keep limping along. Like his other bullshit investments, Trump will make some money from this one, and it’ll be a long time before the clock finally runs out.
A Long Circuitous Path, Along for the RidePost + Comments (60)





