a company with no profits and no future is at $71 per share. Wall Street players... any thoughts?
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NYT
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By most traditional measures, Trump Media’s valuation is inordinately high. The company took in just $3.3 million in revenue during the first nine months of last year, all from advertising on Truth Social, and recorded a loss of $49 million.
That means Trump Media’s market value is more than 1,000 times its estimated annual revenue. Investors regularly assign lofty valuations to small, money-losing companies in anticipation of rapid growth — or a belief that other investors will continue to bid up a company’s shares, for whatever reason — but typically not on this scale.
Other social media companies trade at far smaller price-to-sales ratios than Trump Media: Reddit is around 10, Meta is 7 and Snap is 6, according to FactSet. High-flying tech stocks like the chipmakers Nvidia and ARM trade at price-to-sales ratios of about 25.
The investors who have piled into the stock of Digital World have tended to be individuals, rather than investment firms and hedge funds."