Why Trump Media Stocks Are Destined for Nothing but Failure

Last week, I shared a piece about Trump media stocks, and in particular, Trump Media and Technology Group (NASDAQ: DJT).  Apparently, it ruffled a lot of feathers.

The intention of that article was simply to provide an objective analysis of the stock. This way, you could make an informed decision as to whether or not to buy it.  Unfortunately, I got a fair amount of feedback from those who thought I was too critical of Trump.  And indeed, I was.  Not from a political perspective, though.  Just from the perspective of an analyst.  

And through that lens, you simply cannot deny one significant truth. It may be an inconvenient truth to some, but there’s no debating that Donald Trump has a verifiable history of launching failed businesses.

Trump Media Stocks aren’t the only Failures

It’s a long list, but one worth reviewing.  After all, you can tell a lot about how well or how poorly a company will perform based on historical record.  And Trump’s record cannot be considered a flex.  In fact, in some cases, his companies turned out to be well-orchestrated scams that resulted in multi-million-dollar lawsuits.  And some were just horrible ideas to begin with.  Take a look…

• Trump University / Trump Entrepreneur Initiative 
• Trump Airlines
• Trump Beverages
• Trump Steaks
• Trump Game
• Trump Mortgage 
• Trump Magazine
• Trumpnet
• Trump Tower Tampa
• Trump Fragrances
• Trump Mattresses
• Trump Vodka

And, of course, Trump Casinos, which filed for bankruptcy three times before Trump himself was forced out of his position of chairman.  In total, Trump has six bankruptcies under his belt.  The man made his first investment at age 23. This means he has averaged at least one bankruptcy every nine years he’s been in business.

Yet still, Trump was able to convince a lot of investors to invest in Trump Media and Technology Group.  Indeed, this is evidence of the man’s ability to overcome the stench of shady business dealings with the power of persuasion.  Say what you want about Trump, but you can’t deny his uncanny ability to raise massive amounts of capital.  And while this may be good for Trump and the bankers that get sweetheart deals by helping him raise money, it’s a crap deal for investors.  And this is why I wrote about Trump media stocks to begin with.

Trump started or backed 13 different companies that proved to be successful for no one other than Trump and those closest to him.  Yet it still boggles my mind that when the former President started pushing Truth Social — the social media platform owned by Trump Media and Technology Group — his millions of supporters were eager to invest.  But just like every other operation before Truth Social, this one will also end badly for investors. 

Understand, I take no pleasure in anyone losing money.  Particularly in this case, where I believe a lot of folks were blinded by the illusion that Trump is a savvy entrepreneur.  He is not.  He’s just a guy with family money, a silver tongue and gold-plated confidence.  And I don’t mean this as a criticism.  It’s merely an observation of truth. 

Now when I wrote last week’s article, entitled: Trump Media Stocks are Excellent Investments for those who want to Lose Money, I predicted that DJT would be trading for less than $20 by the end of summer.  I may have been too conservative in that estimate.  After all, the stock lost about 70% of its value from March 26th to April 16th.  And I now believe it’ll break below $20 by June. 

Of course, you can certainly disagree with my assessment.  In fact, if you do, feel free to tell my why on our Discord channel, which you can access here.

To a new way of life and a new generation of wealth…

Jeff Siegel

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Jeff is the founder and managing editor of Green Chip Stocks. For more on Jeff, go to his editor’s page.

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