There are 30M shares, plus whatever amount will be exercised in the warrants (up to 25M ish?). The initial valuation is 1.7B, so that's $31-57 per share to start.
Facebook, which is a similar platform is currently selling for $340 ish per share, but it has almost 3 billion shares (compared to a current max of 55M for DWAC). If DWAC were to go to that status it would be worth about $17,500 per share.
Of course Facebook makes all its money off of selling our lives to the highest bidder, and presumably Trumps media company won't do that. I don't know how it will make money, but its probably not going to be on the same level. It is safe to say it will be worth a lot more than the 1.7B initial valuation though, as long as it does well. And I'd bet money it will do well (in fact I have).
Regarding your comments - there is authorized, issued and outstanding shares.
I don't know how many the charter has authorized to issue, so dilution is possible, but I guarantee Trump is setting up this deal to make money for the investors.
They will make money through advertising, sponsors, etc. Nothing wrong with that. What they won't do is run algos designed to invade peoples' lives - at least I'd like to think so. Disclosure: I bought 1,000 shares on the open.
If this company has other media departments like television, movies, etc., then the social network can act as an extension of that ... they can sell ads there too to keep it free for the end users. As someone else mentioned in a reply, they wouldn't need to scrape every single crevice of your life for data like Fakebook and Gulag does to make money.
Is this social network they're announcing going to be decentralized? There is no need for massive servers anymore ... man, if they do that, wow ... :-) . All we'd have to do is make sure the ISPs in bed with the DS are no longer in bed with them.
It already has a volume of 450M (off of 30M shares). Scalpers have ALREADY taken profit. A lot of it. The reason it is where it is at now is because people see that it will obviously go up quite a bit from here. Just based on the initial valuation its worth about what it is at now. Its not going down from this point, at least not by any meaningful measure. It makes no sense from the perspective of total shares and initial valuation.
I'm guessing the reason both the price and volume have leveled off is because there aren't that many shares left to buy.
I have no issues with it smashing through the roof from here, I sold 50% of my initial purchase from this morning and will hold onto the rest. But all it takes is a bit of panic to create a waterfall. We'll see what happens.
I am not a prognosticator, but panic doesn't change the math.
The initial valuation is 1.7B. The initial number of shares is 30-55M (depending on warrants exercised). That puts the initial share value at $31-57 per share.
Whats the initial valuation based on? Cash on hand is what, $293 million. The rest of that valuation IS prognostication - the product doesnt actually exist yet.
That said, Trump's "good will" is priceless to me and a lot of others, and I like the smell of behavioral investing in the morning.
The transaction values Trump Media & Technology Group at an initial enterprise value of $875 Million, with a potential additional earnout of $825 Million in additional shares (at the valuation they are granted) for a cumulative valuation of up to $1.7 Billion depending on the performance of the stock price post-business combination. Trump Media & Technology Group’s growth plans initially will be funded by DWAC’s cash in trust of $293 Million (assuming no redemptions).
So sure, speculation or estimation. Whatever you want to call it.
I've been watching all the comments today about this stock. I was a professional trader, although I traded futures, and not stocks. I've been shaking my head all day. I'll tell you why.
Pros never gamble. They plan the trade first, then trade the plan. When you deviate from that to "see where it goes," you're gambling. Fine when it's with a small amount of profits you've allocated, but I'm seeing a lot of posts that folks are all in. At least ladder yourselves out of the trade.
Pros develop a healthy dose of skepticism. That means they come up with just as many reasons to stay OUT of a trade than to get in. Everyone I see here is overwhelmingly positive about this company. It may be right...but develop the skepticism, too. When you're overwhelmingly positive, you're trading on emotion. You will end up getting burned more times than not.
I could add more, but these two especially are relevant here.
Slyver did a quick and dirty price analysis on the valuation per share, and it's still "fairly priced". It'd be interesting, and fundamental, to see how that valuation was calculated, but I'll take it at face value...
So don't kick yourself for being down. I missed today too. Kick yourself for staying down, Q1 2022 when product launches.
I've posted some finance / econ talk here before and if anyone's seen it they realize I'm about as conservative with investing advice as it gets. I will re-iterate DO NOT INVEST WHAT YOU CAN NOT AFFORD TO LOSE... But I'm moving some money around tomorrow. 😁
there is also a decent chance it breaks up without retracing past the first level. the units/shares/warrants structure may give this thing more legs than the average runup.
i can appreciate this as an electrical engineer, however, trump broke the polls and many other modelling tools. I no longer trade stocks as i felt immoral making money off of it. I put an order in for 76. I don't care what the price in our monopoly money is at this point. I would love to go flat broke and have real americans back in our government.
There are 30M shares, plus whatever amount will be exercised in the warrants (up to 25M ish?). The initial valuation is 1.7B, so that's $31-57 per share to start.
Facebook, which is a similar platform is currently selling for $340 ish per share, but it has almost 3 billion shares (compared to a current max of 55M for DWAC). If DWAC were to go to that status it would be worth about $17,500 per share.
Of course Facebook makes all its money off of selling our lives to the highest bidder, and presumably Trumps media company won't do that. I don't know how it will make money, but its probably not going to be on the same level. It is safe to say it will be worth a lot more than the 1.7B initial valuation though, as long as it does well. And I'd bet money it will do well (in fact I have).
The idea that it will tank...
I have no idea where you get that from.
Regarding your comments - there is authorized, issued and outstanding shares. I don't know how many the charter has authorized to issue, so dilution is possible, but I guarantee Trump is setting up this deal to make money for the investors.
They will make money through advertising, sponsors, etc. Nothing wrong with that. What they won't do is run algos designed to invade peoples' lives - at least I'd like to think so. Disclosure: I bought 1,000 shares on the open.
If this company has other media departments like television, movies, etc., then the social network can act as an extension of that ... they can sell ads there too to keep it free for the end users. As someone else mentioned in a reply, they wouldn't need to scrape every single crevice of your life for data like Fakebook and Gulag does to make money.
Is this social network they're announcing going to be decentralized? There is no need for massive servers anymore ... man, if they do that, wow ... :-) . All we'd have to do is make sure the ISPs in bed with the DS are no longer in bed with them.
I think when a hoard of scalpers take profit, it will settle back into that zone and move up from there. This is the first day of trading post news.
It would be foolish to dive head first all in as many here were dying to do this morning. In this fashion, you can buy down.
Of course this is my opinion only.
I think those of us who got in @$12 this morning got a hell of a deal.
Wish I bought even more.
It already has a volume of 450M (off of 30M shares). Scalpers have ALREADY taken profit. A lot of it. The reason it is where it is at now is because people see that it will obviously go up quite a bit from here. Just based on the initial valuation its worth about what it is at now. Its not going down from this point, at least not by any meaningful measure. It makes no sense from the perspective of total shares and initial valuation.
I'm guessing the reason both the price and volume have leveled off is because there aren't that many shares left to buy.
I have no issues with it smashing through the roof from here, I sold 50% of my initial purchase from this morning and will hold onto the rest. But all it takes is a bit of panic to create a waterfall. We'll see what happens.
I am not a prognosticator, but panic doesn't change the math.
The initial valuation is 1.7B. The initial number of shares is 30-55M (depending on warrants exercised). That puts the initial share value at $31-57 per share.
Panic doesn't change that number.
Whats the initial valuation based on? Cash on hand is what, $293 million. The rest of that valuation IS prognostication - the product doesnt actually exist yet.
That said, Trump's "good will" is priceless to me and a lot of others, and I like the smell of behavioral investing in the morning.
I'm in.
From the original release statement.
So sure, speculation or estimation. Whatever you want to call it.
I've been watching all the comments today about this stock. I was a professional trader, although I traded futures, and not stocks. I've been shaking my head all day. I'll tell you why.
Pros never gamble. They plan the trade first, then trade the plan. When you deviate from that to "see where it goes," you're gambling. Fine when it's with a small amount of profits you've allocated, but I'm seeing a lot of posts that folks are all in. At least ladder yourselves out of the trade.
Pros develop a healthy dose of skepticism. That means they come up with just as many reasons to stay OUT of a trade than to get in. Everyone I see here is overwhelmingly positive about this company. It may be right...but develop the skepticism, too. When you're overwhelmingly positive, you're trading on emotion. You will end up getting burned more times than not.
I could add more, but these two especially are relevant here.
Thanks for the balanced perspective.
I appreciate your advice and agree
I don't disagree. This should be looked at as a bet, not a technical analysis.
I'm in.
How do I stop pounding my head on a brick wall for not getting into this today? It's starting to bleed.
Is tomorrow too late??
I don't think it is.
Didnt $GME rally for like 3-4 days, solely off of retail FOMO, before it topped out?
Before They stopped it, if you think GME ended you haven't been following along.
Slyver did a quick and dirty price analysis on the valuation per share, and it's still "fairly priced". It'd be interesting, and fundamental, to see how that valuation was calculated, but I'll take it at face value...
So don't kick yourself for being down. I missed today too. Kick yourself for staying down, Q1 2022 when product launches.
I've posted some finance / econ talk here before and if anyone's seen it they realize I'm about as conservative with investing advice as it gets. I will re-iterate DO NOT INVEST WHAT YOU CAN NOT AFFORD TO LOSE... But I'm moving some money around tomorrow. 😁
So many upsides
Trump is smart and clever, he will figure out a way. He is going to have a streaming service.
there is also a decent chance it breaks up without retracing past the first level. the units/shares/warrants structure may give this thing more legs than the average runup.
Agreed. This is simply being very conservative in approach
and it ended at $45...have some comms with your tendies :)
i can appreciate this as an electrical engineer, however, trump broke the polls and many other modelling tools. I no longer trade stocks as i felt immoral making money off of it. I put an order in for 76. I don't care what the price in our monopoly money is at this point. I would love to go flat broke and have real americans back in our government.