Barry Diller Criticizes Trump Media Investors Amid Stock Plunge

The stock market is always full of surprises, but the wild ride of Trump Media and Technology Group (TMTG), the company behind the Truth Social app, really stands out.

by Faruk Imamovic
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Barry Diller Criticizes Trump Media Investors Amid Stock Plunge
© Getty Images/Michael M. Santiago

The stock market is always full of surprises, but the wild ride of Trump Media and Technology Group (TMTG), the company behind the Truth Social app, really stands out. Barry Diller, a big name in media and tech, didn't hold back when he talked about how crazy it was for people to get so excited about TMTG's stock at first.

He even went as far as calling those investors "dopes" for getting caught up in the hype.

The Rise and Fall of a Media Giant

TMTG's entrance into the public market was nothing short of spectacular, drawing considerable attention from retail investors and the meme stock enthusiasts.

The allure of being associated with a platform endorsed by former President Donald Trump was irresistible to many, propelling the stock to soar during its debut. However, this triumph was fleeting as the stock's value plummeted shortly after, revealing the precarious foundation upon which the initial excitement was built.

Diller's criticism, voiced in a recent CNBC interview, underscores a broader skepticism regarding TMTG's financial viability. With a total revenue of a mere $4.1 million in 2023 against a loss of $58 million, as detailed in an SEC filing, the numbers present a grim outlook.

Diller's blunt assessment: "It's ridiculous. The company has no revenue," challenges the rationale behind the stock's initial surge.

A Critique of Investment Logic

The crux of Diller's argument lies in questioning the wisdom of investing in TMTG, a company whose financial health appears compromised.

His remarks suggest that those investing in TMTG may be motivated by factors unrelated to financial soundness, branding them as lacking in judicious investment strategies. Furthermore, Diller draws parallels between TMTG's brief success and the phenomenon of meme stocks, such as Gamestop, hinting at the speculative nature of such investments.

He also expresses doubt regarding the platform's potential for growth, especially considering Donald Trump's current political engagements, which may not translate into long-term stability for the company. Despite TMTG's silence on Diller's comments, the narrative surrounding the company's stock performance speaks volumes.

From a peak that momentarily boosted Trump's net worth to an estimated $7.8 billion, to a rapid descent to $6.4 billion, according to the Bloomberg Billionaires Index, the fluctuations highlight the unpredictable nature of meme stock phenomena.

Additionally, the interest from short-sellers, as reported by The New York Times, underscores the skepticism prevailing in the market.

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