While I was snoozing away in the hospital last week I missed the latest Truth Social news. Here's the stock price since Election Day:
Odd. This is not how it's supposed to work. Trump is now president, so DJT should be increasing smartly. Right?
Sure, except for the fact that the performance of DJT continues to suck. Here are the latest financial results:
They lost $37.7 million yet again in the fourth quarter, for a total of $401 million on the year, and ad sales were a whopping $990,000. That's ridiculous. And CEO Devin Nunes got paid $47 million for this dismal performance:
“Typically there’s some sort of correlation between how well a company is doing and the CEO’s pay, said Michelle Leder, the editor of footnoted.com and an expert on SEC filings. “When a company loses over $400 million and gives its CEO a $44 million grant, you have to wonder what they’re being rewarded for.”
Yes, you have to wonder.
"Truth Social continues to suck"
But does it ever swallow ?
Buy the rumor. Sell the news. An old saying.
There must be a magic incantation you have to say or something, before the mists clear and everything is suddenly revealed as rosy and salubrious.
High Plains Grifter
It's still worth $23 a share, which is amazing for a company whose reason for existing is to be a right wing version of Twitter, when Twitter (or "X") is now the right wing version of Twitter. It should be worth $0 a share.
Well, of course the CEO gets $44 million, or whatever cash is available. Because the Conman Convict in Chief has always paid himself first. Anybody else -- workers, vendors, contractors, stockholders -- maybe they can split any crumbs that might be left. Maybe.
I'm genuinely not sure why it even exists anymore. I used to think it was an easy way to bribe the dickhead, but now he has crypto which is way easier and also untraceable. I guess it will just keep going until the insiders burn up all the cash. Anyone holding this ridiculous meme stock richly deserves to lose every penny of their investment. Any company that employs Devin Nunes - much less makes him CEO and gives him $40m+ - is simply not to be taken seriously. The whole thing is nauseating and infuriating in equal measure.
Their business plan seems to be: make a worse twitter, but with no users or revenue. Also, the boss is buddies with the owner of twitter, so don't even try to compete with them. Profit?
“Typically there’s some sort of correlation between how well a company is doing and the CEO’s pay"
Please show me this magical land that you speak of.
Yeah, I used to get Fortune magazine in the late 70s and early 80s. It was actually pretty good back then - I remember a very well researched article about industries that did not fit the standard free (hand of the) market model.
Airlines were a prime terrible example. Huge costs to enter the market - buying planes, finding (and paying for) landing/takeoff slots, building the reservation and scheduling system, flight and ground crew hiring and pay. A lot of the cost of actually creating a flight was takeoff (flight crew, fuel). If you gamed ticket costs right, all passengers after break-even on the flight take-off cost was pure gravy, inevitably leading to price wars that hammered profit as the Airlines beggared each other.
Mixed concrete was another problematic industry. It has a definite and short life from mixing to delivery - only a limited number of plants are required.