Mohammed Al Shalloudi, a 21-year-old UAE graduate data analyst who invested in Trump's social media startup, is unlike Trump's political fans.
Al Shalloudi bought shares in Trump Media and Technology Group (TMTG) (DJT.O), not because he likes Trump or its program Truth Social. TMTG is one of the most overpriced and actively traded U.S. companies due to an army of speculators seeking a quick profit.
Al Shalloudi said he acquired for $37 per share and sold late last week at $65 per share, earning 76% on his $4,000 investment in a few days. Last week, TMTG listed on Nasdaq for $10 per share and finished Monday at $48.66.
More than a dozen investors who wrote about their investments on Reddit (RDDT.N), opens new tab and X. Most wanted to profit quickly. They bet that Trump supporters' interest in the stock was decoupling it from TMTG's business fundamentals.
LSEG data shows that TMTG's $6.6 billion price is 1,600 times its $4.1 million 2023 revenue. U.S. stocks fell significantly on Monday as investors fretted over Federal Reserve interest rate reduction.
According to LSEG statistics, no other U.S. firm of similar market cap has such a high valuation multiple. TMTG warned investors in regulatory filings that its operating losses pose "substantial doubt" about its survival.
The stock is also among the most traded, according Trade Alert. Social media posts show Trump fans buying TMTG shares, but most of the trade volume is from speculators wanting to flip.
“I invested $10,000 last Tuesday because MAGA is crazy and they will pump the stock,” said Sarah, a 21-year-old Pennsylvania software developer who requested anonymity. The Trump campaign slogan is 'Make America Great Again'.
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