DJT Review
Welcome to the Schmoozeletter Blog. Your source for weekly water cooler wisecracks from the world of finance. If you have an opinion different than mine or a topic you want to hear about, let me know!
This week, we’re talking about:
DJT Review
Make America Grate Again.
We’re just under a year into the Business-Mogul-In-Chief’s second tenure, so let’s recap the performance of DJT.
No, not D.J.T. – Donald J. Trump.
DJT – Trump Media & Technology Group Corp. The corporation of the president, which is a public company listed on the popular tech-heavy stock exchange, the NASDAQ.
I won’t bury the lead here. It hasn’t been good.
Sure, the stock price is down 62%, but the stock doesn’t tell the story of the health of a company. There have been plenty of great companies that sold off this week despite very healthy financials.
Usually, a good place to start is with the revenue. How much money is the company bringing in the door?
6% more than last year?
Positive is good, but I’m just not impressed with the top line growth.
The Truth Social operators have been around for half a decade now, and the highest quarterly revenue they’ve ever had was just over:
$1 Million Per Quarter
The goal of most for-profit corporations is to generate a profit.
So after some quick back-of-the-napkin math…
I was able to calculate that to have positive operating income, they would need expenses less than:
$1 Million Per Quarter
Let’s see how they’re doing in that department. Lucky for me, they dropped their third-quarter results on Friday just as I was writing this. Hot dog!
DJT generated $2,677,400 in revenue through nine months.
DJT generated $143,378,800 in total operating costs and expenses through nine months.
Now, some would say that a $141 million operating loss is a rough year. But for DJT, it is business as usual.
Through the same period in 2024, DJT had a $141 million operating loss.
Consistency is key.
Now you might have the question: Where is the money coming from? Has The Donald been burning through his personal wealth to keep this struggling company afloat?
Nah, of course not. It’s from the American public.
These two charts sum it up perfectly.
The bottom chart is the total shares of the company. The top is their Cash and Debt.
When the corporation needs Cash, they issue shares. This is a public company. So as long as the public is willing to fork over money to own a piece of DJT, the company can keep burning through Cash.
Some of these shares are actually Debt in the form of convertible notes and other fun names, so allow me to bore you with some accountanciness.
Here is their statement of cash flows that breaks it all down.
Over TWO BILLION DOLLARS this year in convertible notes and PIPE?!
What type of PIPE dream is that?
Oh, PIPE is just shares. Got it.
So what is the company doing with all their Cash?
Paying themselves!
Oh, wait no. I meant to say:
Buying Digital Gold!
Running a company that brings in revenue in the form of United States Dollars is so twentieth century. The new craze is to run a company that just buys crypto.
So to recap, DJT is a company losing hundreds of millions a year and producing no real revenue-generating goods or services of any kind while quite literally transferring wealth from the American public to a select few insiders.
The art of the deal.
Final Thought
My goal is to own the very best companies in the world. I am looking to buy companies with exceptional business models when they are trading at reasonable prices. DJT is… not that.
