After it took some of the market capitalizations of both Twitter and Facebook: now Trump media is facing a real opponent: Elon Musk. one of the most admired men in the planet.
Musk transformed TSLA into a cult, the first meme stock, before meme stocks were cool. And it looks like the only one who can save Twitter too. In which he bought a 9.2% stake, worth 3Bil.
In this situation, considering also Trump`s appreciation for Putin and that the US should leave NATO, i think its SPAC won`t get too much sympathy in the near future.
In fact, i even expect a retracement to the 23.50 support. and you know that i am not bias when it comes to the stock market. i was the first calling the 150 price target for DWAC (it reached $175):
theyre falling and failing since their social media is failing to have users, they had 6 million users a week and it dropped last 2 weeks to 2 million a week, itll continue to drop since conservatives cannot stand that there are no libs there to "make them cry". no matter how much republicans hate twitter, they will never leave it. even Gab, a site meant for republicans, has a verified twitter account. its just funny to me.
jrothlander
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@infra223, Well, at this time in Facebook's life, they had not reach 2500 users. In Twitters life, it would still be 22 months before they send their first tweet. Facebook started with only 2500 users the first few months. Twitter took 2 years before Dorsey sent his first tweet. I don't know if Truth will crash and burn, and statistically they should since less than 1/1000 companies like this are a success. But a poor start is expected. And by poor, we are talking about 6M users in the first month, which is actually more than any other start up social media platform in history. So poor is pretty relative.
I'll just continue to buy the dips. Currently I do not have anything in DWAC but I am watching for when to step back in... which will probably be soon, as soon as the bulls are verifiable.
infra223
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@jrothlander, you do realize when facebook had low users, it was because it was relatively a new concept. social media wasnt used as much as it is now. the main users are in the younger with the main age being 15-30. truth social is meant for conservatives and republicans. the main age range for that is 30-50. truth social is too niche to actually make money. its like gab. gab is dead. its so dead they made their own twitter account where they get more interaction than they do on their own account on their own site which is meant for republicans. even if truth social has Trump as their main leader, he doesnt even use the site. hes made one post in a month or so which barely 900k followers. if even the circus leader doesnt use his account, how can truth social even be good?
mathignihilcek
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@jrothlander, where do you get 6 million users in month one?
I’m looking at close to 877,000 which is grim, but if they are at 6,000,000 that makes their 8 million target easy.
The momentum against Twitter is due to their censorship of conservatives and Musk investing in Twitter does not change that.
I do think the free fall we’ve been in the past few weeks is warranted given the slow roll out of Truth Social, and it will continue until the quarterly earnings release. At that point, it’ll be up to TMTG to justify if or how they plan on meeting their 8 million users by end of 2022 target despite a rollout of only ~800,000 in 1.5 months.
Truth Social does have high engagement numbers, so it’s possible that they exceed their projected ad revenue per user whenever they finalize those deals, but a miss on their year 1 goals would not be a good sign, since even their rosy year 2 goals do not warrant even the current valuation.
If, however, they proffer a believable roadmap to meet or exceed their year 1 target in their Q1 report, I’d expect the stock to return to an upward trend.
Ultimately though, even if they hit all their targets, the company’s stock should justifiably still be hovering around $58 in 2024. Its only after 2024 that the company plans on delivering massive growth above that point.
mathignihilcek
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Allow me to correct myself.
My comment on this not being Elon vs Trump was made before Elon tried to actually buy Twitter. IFF he succeeds, it will become Elon’s company vs Trump’s company.
I sold my stock as a result of that news and the lack of any quarterly from TMTG. It’s still possible that Elon backs TMTG as a fallback plan if Twitter manages to keep him from buying them. Literally anything is possible. And if he does buy Twitter he could still tank the platform.
I don’t want to bet on the reliability of Elon Musk. Either way, up or down. Musk is unpredictable and volatile. He could be a gold mine or a bomb. If he backs off Twitter, I’ll 100% return to dwac.