Trump Media is “a scam,” and individuals purchasing its high-flying stock are “dopes,” IAC and Expedia Chairman Barry Diller stated Thursday in a scathing takedown of the social networks business whose bulk investor is previous President Donald Trump.
“I mean, it’s ridiculous,” Diller stated on CNBC’s “Squawk Box” when inquired about TrumpMedia “The company has no revenue.”
“It’s a scam, just like everything he’s ever been involved in is some sort of con,” he stated of Trump.
A Trump Media spokesperson, in reaction to Diller’s remarks, stated, “It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression that contradicts the narratives they want to enforce.”
CNBC has actually asked for remark from a spokesperson for Trump, who is the presumptive Republican governmental candidate.
When Trump Media started trading last week with the ticker DJT, its share rate soared up about 50% to near to $80 before calming down. As of Thursday early morning, Trump Media shares were costing almost $47
That provides the business a massive $6.4 billion market capitalization in spite of the truth it had simply $4.1 million in profits in 2015, and its organization is concentrated on the Truth Social app, which has substantially less users than significant social networks platforms.
Trump Media on Monday reported it had bottom lines of $58 million in 2023.
He compared the rate run-up of Trump Media to the “meme stock” craze in 2021, when the rate of GameStop skyrocketed to almost $500 per share and AMC Entertainment, a theater business, saw its share rate escalate to more than $700
GameStop shares were costing less than $12 per share in early trading Thursday early morning, and AMC shares for simply more than $3.
“I think they’re dopes,” Diller stated when asked why individuals are purchasing the business’s stock.
“I mean, who would buy a company that literally, what does it have, $30 of revenue? Who could put a value on that?” Diller asked.
“They’re buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop, whatever.”
“It’s stupid. Stupid stuff,” he stated.
Asked if Trump Media might ever end up being a larger organization than it is now, especially if Trump is chosen president later on this year, Diller flatly responded, “No … no.”
“Look, he’s only interesting now because he’s out there entertaining the folks,” Diller stated. “I hope if he gets elected he just plays golf for four years.”
