Entrepreneur Ross Gerber’s eyebrow-raising comments about the valuation of Donald Trump’s new media company, Trump Media & Technology, have sparked intrigue in financial circles.
Breaking It Down: Gerber didn’t hold back in questioning the current valuation of Trump’s media venture.
From Gerber’s perspective, the company’s valuation appears to be ripe for short sellers like Hindenburg Research and Muddy Waters Research.
Gerber took to X, the rebranded Twitter platform, to air his doubts about Trump’s media enterprise.
The notable financial commentator, Herb Greenberg, recently chimed in, suggesting that minus Trump’s name, this company would likely be classified as a penny stock.
This questioning of the company’s market value is reminiscent of previous instances where companies faced scrutiny over their financial sheets and promises of innovative technology.
A Look Behind the Curtain: Following its controversial report on Equinix Inc. last week, Hindenburg Research raised eyebrows by pointing fingers at the data center company for inflating profitability and misleading investors about its AI capabilities.
The company’s claims about its user growth and customer acquisition expenses were put under the microscope by Hindenburg, aligning with the group’s history of spotting questionable financial practices.
Trump’s media venture, despite its lofty $5 billion valuation, has drawn skepticism from experts who caution about the enduring echo of Trump’s financial missteps and the underwhelming user engagement on Truth Social.
Echoing this sentiment, MSNBC’s Helaine Olen highlighted the potential pitfalls awaiting investors who dive headfirst into former President Trump’s latest social media endeavor.
Market Watch: At the last check, Trump Media & Technology’s stock was on a 12.02% rise, trading at $64.96 on Benzinga Pro.
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Important Note: The production of this content was supported by Benzinga Neuro, and all editorial decisions were made by Benzinga’s team of editors.
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