One of the hallmarks of former Donald Trump’s presidency was the use of social media and perhaps through this people felt more in contact with him. Unfortunately the former President dived into conspiracy theories rather than the government operations and eventually Twitter, Facebook and all other social media companies had to ban him. However the former President still has a following and when there is a loyal following someone will want to monetize it.
In an article by Noor Zainab and Greg Roumelitois of Reuters, a social media company called Digital World Acquisition Corp was agreed to merge with Trump Media & Technology Group (TMTG). On the face of it, that is a good thing and people rushed to buy shares pushing the share price up and for a while the valuation of the company went from $875 million to $4 billion as the stock went close to $100 a share, the stock trades around $50 a share.
Senator Elizabeth Warren asked the SEC to investigate TMTG proposed merger with Digital World over potential violations of securities laws.
Digital World has made some lofty projections of the average revenue per user to $13.50 in 2026 with over 81 million subscribers. It should be noted, the beta testing for the app is expected to be launched in the first quarter of 2022.
Linking to dividend paying stocks, in the case above there is a plenty of hope and many companies on the stock exchanges trade on hope for a better day. The plans they have for the future will come true, and if you believe in the founders just maybe, the plans will come and they will gain transaction with the public and all the pieces will fall into place. It tends to be a long journey and other competitors will come into place, but hope is part of the stock exchange. For those who want less hope and more results, examining profitable companies that pay dividends is likely a more profitable way to invest. For the above, there are some who bought at near the top, the stock trades at half the price and the person has to hope for the best. If they bought a profitable stock that can pay a dividend, while they hope for the best the dividends roll in to give more options.
There are more questions than answers, till the next time – to raising questions.