DWAC had no real operations (no revenues) and all of its funding came from the initial stock issuance and any interest or investment income.
The company faced serious financial losses detailed in SEC filings and allegations that Trump may have misled investors and potentially violated securities law with his post on Truth Social last week.
Truth Social's stock fell nearly 30% since its merger with Digital Acquisition World Corp just two weeks ago.
On April 8, 2024, it was reported that Truth Social's stock had fallen nearly 30% since its merger with Digital Acquisition World Corp just two weeks ago. The company also faced serious financial losses detailed in SEC filings and allegations that Trump may have misled investors and potentially violated securities law with his post on Truth Social last week. DWAC had no real operations (no revenues) and all of its funding came from the initial stock issuance and any interest or investment income. The company's topics included Donald Trump, Truth Social, financial stability, $200 million in cash and zero debt comments that Trump made.
Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month. As of Monday afternoon, the stock was priced at about $36 down from a high of $66 seen March 27.
Former President Donald Trump owns a majority of the company's shares and has seen his net worth move in tandem with the stock price, falling from about $5.2 billion down to about $2.9 billion.
Deception
(30%)
The article is deceptive in several ways. Firstly, the title implies that Trump Media stock has erased all gains since it began trading as DJT when in fact it only lost $16 of its initial price of $58. Secondly, the author states that so many available shares reflect traders' bets that the stock will fall but fails to mention what percentage these short-selling positions represent. This information is important because if a large portion of the trading activity represents short-selling positions then it could indicate market manipulation or insider knowledge. Thirdly, while some experts are quoted stating that this is called short selling and explaining how it works, others in the article make statements that contradict these explanations making it unclear what they mean by
<p>While some traders are looking to make even more gains from continued price declines, others may be looking to <strong>squeeze</strong> the short positions by betting that something will cause the share price to rise.</p>
The title implies that Trump Media stock has erased all gains since it began trading as DJT when in fact it only lost $16 of its initial price of $58.
Fallacies
(70%)
None Found At Time Of
Publication
Bias
(85%)
The article contains multiple examples of bias. Firstly, the author uses language that dehumanizes Trump Media stock by referring to it as 'erased all gains' and 'fall another 11%'. This is an example of disproportionate number of quotations reflecting a specific position. Secondly, the article quotes Ihor Dusaniwsky who says short-selling reflects traders bets that the stock will fall. However, this statement implies that all short selling is negative and ignores positive reasons for it such as hedging against potential losses or speculating on price movements. This is an example of monetary bias. Thirdly, the article quotes Devin Nunes who says he was confident about the future of the business despite company filings stating otherwise. This is an example of religious bias where personal beliefs are given more weight than facts and evidence.
Devin Nunes says he was confident about the future of the business despite company filings stating otherwise.
Ihor Dusaniwsky, managing director at S3 Partners, a data and predictive analytics company said this is called short-selling. Right now, much of the trading activity surrounding the stock reflects investors attempts to position bets around whether it will continue to fall.
Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month.
Trump Media shares became publicly traded after a merger with Digital World Acquisition Corp.
Former President Donald Trump is the biggest shareholder of Truth Social app with 78.75 million shares that give him a stake of nearly 58% of the social media company's common stock.
Trump could receive another 36 million in so-called earnout shares over the next three years if Trump Media's stock stays above certain benchmarks.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, it states that Trump Media shares are publicly traded when they have only been trading for a few days and their stock price has fluctuated significantly since then. Secondly, the article implies that Nunes and other executives were rewarded with stock options or bonuses but does not provide any specific details on how these rewards were structured or what percentage of them vested. Lastly, the article mentions Trump's stake in the company without disclosing whether it is a controlling interest.
Trump himself is by far the biggest shareholder, with 78.75 million shares that give him a stake of nearly 58% of the social media company's common stock.
The number of people financially rewarded in the early stages of the company is limited.
The merger that led to Truth Social shares becoming publicly traded is also paying off for top executives and other insiders at the company
Fallacies
(75%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by citing a professor from USC as an expert on the matter without providing any context or qualifications for their expertise. Secondly, there is a dichotomous depiction of Trump Media's stock price being either above certain benchmarks or not, which oversimplifies the complexities of the situation and ignores other factors that may affect the stock price. Lastly, there are several examples of inflammatory rhetoric used to describe Trump Media's financial rewards for executives and insiders.
The former president is not an executive of the company
It sounds like more of a contract that you give to an executive than to a controlling shareholder
Trump could receive another 36 million in so-called earnout shares over the next three years, provided that Trump Media's stock stays above certain benchmarks.
Bias
(85%)
The article contains examples of monetary bias and religious bias. The author mentions that Trump Media shares are publicly traded and the company is owned by the Truth Social app which was regularly used by former President Donald Trump. This implies a connection between religion (Trump's faith) and business success, as well as an emphasis on financial rewards for executives of the company.
The number of people financially rewarded in the early stages of the company is limited. Besides the former president, it includes the chief financial officer, chief operating officer, and several people close to Trump.
Site
Conflicts
Of
Interest (50%)
Dan Mangan has financial ties to Trump Media through his ownership of nearly 58% in the company's common stock. He also reports on Devin Nunes and Phillip Juhan who are executives at Trump Media and have received earnings from the company.
$78.75 million shares of Trump Media stock owned by Donald Trump and his stake of nearly 58% in the company's common stock
Shares of Trump Media & Technology Group have fallen by 8%
Trump's stake in the company has shrunk to about $2.9 billion from a peak of $5.2 billion
Experts warned that Wall Street was overvaluing the company based on traditional fundamental metrics like revenue and users
Accuracy
Trump Media lost $58 million last year on very light revenue of just $4.1 million
Shares of Trump Media and the blank check company it merged with have more than doubled this year.
Former President Donald Trump owns a majority of the company's shares and has seen his net worth move in tandem with the stock price, falling from about $5.2 billion down to about $2.9 billion.
Deception
(30%)
The article is deceptive in several ways. Firstly, the title implies that Trump's net worth has decreased by $2 billion since Truth Social stock peaked last month when in fact it only dropped to $5.2 billion from a peak of $66.22 on March 27th which was not mentioned at all in the article.
The title implies that Trump's net worth has decreased by $2 billion since Truth Social stock peaked last month when in fact it only dropped to $5.2 billion from a peak of $66.22 on March 27th which was not mentioned at all in the article.
The article states that 'Trump owns a dominant stake of 78.8 million shares in Trump Media' but fails to mention how much he paid for those shares or if they were acquired through any means other than purchase.
Fallacies
(75%)
The article contains several fallacies. Firstly, the author uses an appeal to authority by stating that experts immediately warned Wall Street was drastically overvaluing Trump Media based on traditional fundamental metrics like revenue and users. However, this statement is not supported with any evidence or quotes from these experts. Secondly, the author commits a false dilemma fallacy when comparing Twitter's revenue generation to Trump Media's by stating that it generated more than 100 times as much revenue in 2013 ahead of its IPO even though Reddit achieved almost twice the valuation after its IPO. This statement is misleading because it does not take into account other factors such as market conditions, competition, and user engagement. Lastly, the author uses inflammatory rhetoric by stating that Trump Media's stock has tumbled by $2 billion since Truth Social stock peaked last month.
The selloff has shrunk former President Donald Trump’s stake in the controversial company to about $2.9 billion.
Bias
(85%)
The article is biased towards the negative performance of Trump Media & Technology Group's stock. The author uses language that demeans and criticizes the company such as 'brutal week', 'overvaluing', and 'experts immediately warned'. Additionally, the comparison to Twitter (now known as X) is misleading because it was already a well-established company with significant revenue before its IPO. The author also uses language that implies Trump's stake in the company has decreased significantly when in fact it only dropped by 21%.
The selloff has shrunk former President Donald Trump’s stake in the controversial company to about $2.9 billion.
Trump Media disclosed losing $58 million last year on very light revenue of just $4.1 million.
Truth Social is facing serious financial losses detailed in SEC filings
Allegations that Trump may have misled investors and potentially violated securities law with his post on Truth Social last week
DWAC had no real operations (no revenues) and all of its funding came from the initial stock issuance and any interest or investment income
Accuracy
Former President Donald Trump owns a majority of the company's shares and has seen his net worth move in tandem with the stock price, falling from about $5.2 billion down to about $2.9 billion.
Trump Media lost $58 million last year on very light revenue of just $4.1 million
Shares of Trump Media & Technology Group have fallen by 8%
Deception
(50%)
The article is deceptive in several ways. Firstly, the author claims that Trump's comments on Truth Social's financial robustness are probably correct when there is no evidence to support this claim. Secondly, the author quotes an expert who states that Trump's declarations may have misled investors and potentially violated securities law by painting a false picture of the company's standalone viability. Thirdly, the article fails to disclose any sources or provide any supporting documentation for its claims.
The author claims that Trump's comments on Truth Social's financial robustness are probably correct when there is no evidence to support this claim.
Fallacies
(100%)
None Found At Time Of
Publication
Bias
(85%)
The author of the article is biased towards Donald Trump and his media venture. The author uses quotes from experts to support their own narrative that Trump's comments on Truth Social's financial stability may have misled investors and potentially violated securities law. The author also presents information in a way that supports the idea that Truth Social has improved its financial situation through its merger with DWAC, despite evidence suggesting otherwise.
If it is growing slowly and Trump calls it 'fast', there is some room for the SEC or a court to decide
The former president President Trump championed the financial stability of Truth Social last Thursday in a post on the platform
Trump's portrayal of the financial windfall as inherent to Truth Social rather than a lifeline from DWAC
Truth Social is slumping and wiping out billions of dollars in value in former President's stake.
Former President owns a majority stake in the company and his stake was valued at about $2.9 billion on Monday, down from a peak of over $6 billion after its debut on its trading debut.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(30%)
The article is deceptive in several ways. Firstly, it uses sensationalist language such as 'plunging', 'erasing billions of dollars in value' and 'sharp declines over the past two days'. These phrases are used to create a sense of urgency and importance without providing any context or evidence for these claims. Secondly, the article quotes an analyst who cautioned that Trump Media shares were trading completely divorced from its actual financial health but then goes on to state that 'shares are being sustained by thousands of individual investors'. This contradicts the previous statement and creates a false sense of security in the company's financial stability. Lastly, the article mentions that analysts had cautioned about Trump Media shares trading completely divorced from its actual financial health but does not provide any evidence to support this claim.
Shares of Truth Social are plunging for a second consecutive day on Monday.
Fallacies
(70%)
The article contains several fallacies. The first is an appeal to authority when it states that the board of Trump Media & Technology Group is made up of people who Trump knows well, including his son and former administration officials. This implies that their judgment should be trusted without question, which is a fallacy.
The board of Trump Media & Technology Group includes people whom the author believes are trustworthy because they know them personally.
Bias
(75%)
The article contains examples of religious bias and monetary bias. The author uses language that depicts Trump Media & Technology Group as a success despite its financial struggles. Additionally, the author mentions that thousands of individual investors are sustaining the shares, many who are believed to be strong Trump supporters.
Analysts had cautioned that Trump Media shares were trading completely divorced from its actual financial health.
Shares of Truth Social are slumping, wiping out billions of dollars in value in former President's Trump's stake.
Trading has been remarkably volatile since its debut, with some big swings. The sharp declines over the past two days will take a big bite out of Trump's paper gains.
