Financial commentator Herb Greenberg expressed skepticism about the valuation of former President Donald Trump‘s media company, Trump Media & Technology Group Corp DJT, suggesting it would be considered a penny stock if not for Trump’s name.
The Critique: Greenberg’s remarks came during a segment on CNBC’s “Last Call,” where he questioned the legitimacy of the company’s market valuation. The critique aligns with a broader discussion on the financial viability of Trump’s latest business venture, labeling it as “overhyped.”
“In any other world with any other name or person associated with it, this would be a penny stock,” he said.
“This company doesn’t deserve this valuation.”
He added that unless there is some radical change, the stock will probably fall below its current valuation in the future.
The public debut of Trump’s media company has been met with a mix of enthusiasm and skepticism. The company, which went public following a merger with Digital World Acquisition Corp (DWAC), has been labeled a ‘meme stock’ by some financial experts.
The merger faced multiple setbacks, including shareholder vote delays and legal actions against Trump by co-founders of the company. These events have cast doubt on the company’s stability and future performance.
Furthermore, an expert has cautioned investors and experts about the public debut. The social media venture’s modest user base and Trump’s history of financial failures are seen as red flags that could dampen investor confidence.
