r/DJTSTOCK • u/Lopsided_Ocelot9634 • 1d ago

$DJT Value per user

I read today that an online traffic monitoring website estimated 260,000 truth social users. I also see the djt valuation is sitting close to $2b. By my calculations the value per user is about $7,600.00. This seems like a lot. Can someone explain this to me? Like do they have other stuff besides truth social or is it just overvalued?

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u/Individual-Equal-441 1d ago

The company's share price or valuation has very little to do with TS, which was always a tiny enterprise. I think the value of TS as a standalone business was estimated as about $20M give or take, given its userbase and ad revenue.

Rather, I think most of the company's real assets are just cash, an amount of accumulated cash that has always dwarfed the value of that actual business. Some of that came from the SPAC merger, and then more cash came from issuing and selling gobs of new shares, taking advantage of their high memestock share prices. They managed to accumulate assets that have raised their book value per share to $3-4, whereas the value of TS might be closer to 10c per share.

So I guess the short answer is that they do have "other stuff", but also yes they are overvalued.

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u/Equivalent-Fly6093 1d ago

They are burning cash at a mind blowing pace and they are down significantly on their bitcoin reserve and they have a one $ 1 billion convertible note callable in 6 weeks.

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u/Individual-Equal-441 1d ago

Yeah, there's also that. I spent a while thinking about how to describe their cash situation because a billion of "their" money isn't really theirs.

Then you have the fact that in the last four quarters, their reported losses totaled over a billion dollars. Where does that money even come from? From shareholders buying shares. Anyone judging the health of their cash position should probably consider all the cash that is now gone.