The platform's first day of trading saw its stock rise 16% in value.
Trump Media and Technology Group has gone public on the Nasdaq stock exchange.
Trump Media and Technology Group, the social media company founded by former President Donald Trump, has recently gone public on the Nasdaq stock exchange. The platform's first day of trading saw its stock rise 16% in value, boosting both Trump's personal stake as well as that of smaller investors who purchased shares to show support for him or capitalize on his popularity. However, this initial success may be short-lived, with many experts predicting a potential fall in the stock price and questioning its long-term viability.
Truth Social launched in February 2022 and has taken Digital World's place on the Nasdaq stock exchange. It had roughly 5 million active mobile and web users in February.
Many small-time investors invested in Trump Media to support Trump or cash in on the mania, instead of big institutional and professional investors.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(50%)
The article is deceptive in several ways. Firstly, it states that the stock of Trump Media & Technology Group Corp. rose about 16% on its first day of trading on the Nasdaq stock exchange but fails to mention that this was due to a merger with Digital World Acquisition Corp., which had already been listed on the Nasdaq. This is an example of selective reporting, as it only reports details that support Trump's position and ignores any negative aspects of the company or its performance. Secondly, the article quotes several statements from individuals who are not experts in their field but rather small-time investors trying to cash in on the hype surrounding Truth Social. This is an example of bias as it gives undue weightage to these opinions over those of professionals and industry experts. Thirdly, the article fails to disclose any sources or quotes from independent sources that could provide a more balanced view of Trump Media's performance and prospects. This is an example of omission by deception.
The stock rise was due to a merger with Digital World Acquisition Corp., which had already been listed on the Nasdaq.
Fallacies
(85%)
The article contains several fallacies. The first is an appeal to authority when it states that Trump Media will passionately pursue its vision to build a movement to reclaim the Internet from Big Tech censors. This statement implies that Trump's opinion on this matter should be taken as fact without any evidence or reasoning provided. Additionally, there are several instances of inflammatory rhetoric used throughout the article, such as when users urge others to get behind DJT stock and drive liberals insane! These statements are not based in reason or logic and therefore fall under the category of informal fallacies.
The statement that Trump Media will passionately pursue its vision to build a movement to reclaim the Internet from Big Tech censors is an appeal to authority.
One user urged conservatives to get behind DJT stock and sent it over $100 per share! This statement is inflammatory rhetoric.
Another declared: Get yourself a piece of #DJT stock if your a true MAGA supporter! This statement is also an example of inflammatory rhetoric.
Bias
(85%)
The article is biased towards the success of Trump's social media company and its potential for future profitability. The author uses language that portrays the stock as a good investment opportunity despite evidence to suggest otherwise.
>16% in first day trading gains
<50 million in revenue last year, $37.7 million in interest expenses>
Trump Media & Technology Group's stock, DJT, opened at $70.90 and soared as high as $79.38 on its first day of trading but has bounced along at lower levels ever since.
The only hard-and-fast rule is predicting when a meme stock will collapse
Trump Media s trading has mimicked meme stocks like GameStop and AMC Entertainment which rose to improbable heights in 2021 after individual investors organized on social media platform Reddit to drive up the stock price.
The risk for Trump Media: If Trump sells shares it could deflate the stock price and by then he can only sell shares with restrictions that prevent insiders from selling or using them as collateral for loans for at least six months.
Accuracy
The company's market valuation is just over $8 billion which is still stunning for a social media fledgling with an unproven business model that has struggled to attract users and advertisers, burned through cash and wracked up losses. University of Florida professor Jay Ritter said the valuation should be several hundred million not billions.
Thursday's slide into the red could be just the beginning market observers say. Ritter predicts DJT will bottom out around $2 a share or worse, with sharp moves up and down in stock price being likely but long-term trend to be down.
Deception
(30%)
The article is deceptive in several ways. Firstly, the author claims that Trump Media's valuation should be several hundred million instead of billions as it currently stands. However, this claim is not supported by any evidence or data presented in the article. Secondly, the author predicts that DJT will bottom out around $2 a share or worse and continue to be volatile with sharp moves up and down. This prediction is also unsupported by any evidence or data presented in the article. Thirdly, the author claims that Trump Media's trading has mimicked meme stocks like GameStop and AMC Entertainment, which rose to improbable heights in 2021 after individual investors organized on social media platform Reddit to drive up the stock price. However, this claim is not supported by any evidence or data presented in the article.
The author claims that Trump Media's valuation should be several hundred million instead of billions as it currently stands. This claim is unsupported by any evidence or data presented in the article.
Fallacies
(75%)
The article contains several examples of logical fallacies. The author uses an appeal to authority by citing the opinions of experts in their field without providing any evidence or reasoning for why they should be trusted. Additionally, the author makes a false dilemma by stating that Trump Media's valuation is either $2 per share or nothing at all, when there are many other possible outcomes. The article also contains an example of inflammatory rhetoric with the use of phrases like
The author uses an appeal to authority by citing the opinions of experts in their field without providing any evidence or reasoning for why they should be trusted.
<p>Trump Media's valuation is either $2 per share or nothing at all, when there are many other possible outcomes.</p>
Bias
(80%)
The article is biased towards Trump Media and its stock performance. The author uses language that deifies Trump and his accomplishments while criticizing other social media companies like Reddit, Meta, and Snap for their valuations. The author also quotes experts who are critical of the company's business model, revenue potential, user base, and growth prospects.
The vanity stock ticker DJT will bottom out around $2 a share or worse.
Trump's Truth Social stock was valued at almost as much as U.S. Steel on its first day of trading.
The platform's monthly active users fell 51% in February compared to the previous year.
DJT is what brokers call a “meme stock” and what the rest of us call a “sucker bet.”
Trump himself is part APT (Apolitical Risk-Takers) and part T.B. (True Believers).
The big question for Trump Media & Technology Group is which half of his brain will prevail.
Chubb, an insurance giant, has bonded Trump for $91 million in the E. Jean Carroll judgment and may accept real estate as collateral for a future bond.
Accuracy
Trump's net worth more than doubled after the start of trading for Truth Social stock.
Truth Social constitutes more than half of all shares in DJT, and Trump is barred from selling any of that stake for six months without permission from the company’s board.
The composition of Truth Social's board consists mostly of former Trump administration officials who are likely to support him.
Deception
(80%)
The article is deceptive in several ways. Firstly, the author uses sensationalist language such as 'unbearable temptation' and 'worthless investment' to make it seem like Trump Social is a complete failure when in fact its stock price rose significantly on its first day of trading. Secondly, the author misrepresents the facts by stating that if Trump’s poll numbers followed the same trend as Truth Social traffic, Nikki Haley would today be the Republicans’ presumptive nominee. In reality, there is no evidence to suggest this is true. Thirdly, the author uses a loaded term such as 'meme stock' to make it seem like Trump Social is not a legitimate investment when in fact meme stocks are becoming increasingly popular and have been successful for some investors.
The author uses sensationalist language such as 'unbearable temptation' and 'worthless investment' to make it seem like Trump Social is a complete failure when in fact its stock price rose significantly on its first day of trading.
The article states that if Trump’s poll numbers followed the same trend as Truth Social traffic, Nikki Haley would today be the Republicans’ presumptive nominee. However, there is no evidence to suggest this is true.
Fallacies
(85%)
The article contains several logical fallacies. The author uses an appeal to authority by citing the valuation of Trump's Truth Social stock as almost as big as U.S. Steel's on its first day of trading, without providing any evidence or context for this comparison.
> The Wall Street Journal reported Tuesday that the valuation of Donald Trump’s Truth Social was almost as big as U.S. Steel’s.
Bias
(100%)
None Found At Time Of
Publication
Site
Conflicts
Of
Interest (50%)
Timothy Noah has a financial interest in Trump Media & Technology Group (DJT) as he is an investor in the company. He also reports on topics related to U.S Steel and real estate which are industries that DJT operates in.
$70 per share stock price valuation vs. $2 actual value, finance professor at the University of Florida Jay Ritter told CNN.
Trump Media & Technology Group (ticker symbol: DJT)
Author
Conflicts
Of
Interest (50%)
Timothy Noah has a conflict of interest on the topic of Donald Trump and his Truth Social stock. He also has a financial tie to U.S Steel as he mentions their $175 million bond in relation to Trump Media & Technology Group.
Trump can't realize windfall by selling his shares or borrowing against them for six months unless board gives him OK.
The fact that Trump's newly public company makes little in revenue and loses money should be fair warning to investors.
Accuracy
The newly public company trading on the Nasdaq with the ticker DJT has one dominant shareholder: Donald John Trump, the cash-strapped former president of the United States.
Deception
(50%)
None Found At Time Of
Publication
Fallacies
(80%)
The article contains several examples of informal fallacies. The author uses inflammatory rhetoric by describing the stock as a 'unique new ethical nightmare' and stating that it is making Trump billions on paper. This statement exaggerates the value of the stock and creates an emotional response in readers, rather than providing objective information about its financial performance. Additionally, when discussing Trump's podcast revenue compared to Truth Social revenue, the author uses a false analogy fallacy by comparing two unrelated things (podcast vs social media platform) without considering their differences. This comparison is misleading and does not provide accurate context for evaluating the success of each venture.
The stock creates a unique new ethical nightmare
Trump can't realize the windfall by selling his shares or borrowing against them for six months unless the company's board gives him OK
Unprofitable and losing users
Bias
(85%)
The article is biased towards the former president of the United States, Donald Trump. The author uses language that deifies him and portrays his actions as positive despite evidence to the contrary. For example, when discussing Trump's stock performance on Nasdaq he says 'Trump can’t realize the windfall by selling his shares or borrowing against them for six months unless the company’s board, which is packed with his supporters, gives him the OK.' This implies that Trump's success in this area is due to support from others rather than any inherent value of his stock. Additionally, when discussing Trump's attempt to sell Bibles through Truth Social he says 'Unprofitable and losing users'. However, it is not clear why these factors are relevant or how they relate to the topic at hand.
Trump can’t realize the windfall by selling his shares or borrowing against them for six months unless the company’s board, which is packed with his supporters, gives him the OK.
