Trump may be $3 billion richer, but there are serious hurdles

The bad news for Trump is that his stake in the company is not as financially sound as it might first appear. In addition, Trump himself might have trouble getting funds quickly. Experts point out that “financially, Trump’s much more stable asset is his real estate.”

Market experts agree that Trump Media may be overvalued, meaning it could be very difficult for Trump to sell or even write off the stock.

“The value of this stock is clearly a bubble. “No rational investor would invest in these stocks given their inflated value, especially if they could lose their value in the near future,” said Jonathan Macy, a professor at Yale University.

Court reports show that Trump Media reported a profit of $1.1 million in the third quarter of last year, but in general, the company operated at a loss of $26 million last year.

Another problem is the user base, which continues to shrink. The number of monthly active users of “Truth Social” decreased by 39% last year. This social network is much smaller than X (formerly Twitter), which is also losing users, but at a slower pace.

The value of “Trump Media” is still estimated at six billion dollars. The current market value is actually not justified. “It is very overrated. Today, the value of this company is too high. Such shares would be bought by a not very smart investor, because everyone understands that this price does not correspond to the true value,” experts say.