Based on the provided data, here's a comprehensive analysis of DJT's valuation:
Valuation Analysis
DJT appears significantly overvalued based on multiple metrics. The company's Price-to-Sales (P/S) ratio was extremely high at 626.89 in Q3 2024, indicating severe overvaluation compared to industry peers like Reddit (P/S of ~17.6) and Snap (P/S of ~3.3).
Financial Performance
The company's revenue is declining, with Q3 2024 sales of only $1 million, down from $1.1 million in 2023. Additionally, DJT reported a Q3 net loss of $19.2 million with soaring administrative costs up over 1,000% year-over-year.
Market Position
The stock's current market valuation of approximately $9 billion appears disconnected from fundamentals, especially considering:
- Minimal revenue ($1 million quarterly)
- No profitability
- Limited user metrics (9 million sign-ups reported in February 2024)
- Declining year-over-year revenue
Risk Factors
- Material weaknesses in internal financial controls
- Heavy dependence on single platform (Truth Social) for revenue
- Lack of Wall Street coverage and consensus estimates
- High concentration risk with Trump's 52.9% ownership
Recent Developments
The company is attempting to diversify through:
- Launch of Truth+ streaming service
- Development of TruthFi fintech division
- Planned ETF offerings under Truth.Fi brand
Based on the analysis, DJT appears significantly overvalued at current levels, with the stock price driven more by sentiment than fundamental business metrics.