From Nasdaq: 2024-04-11 05:06:00

Trump Media and Technology Group (NASDAQ: DJT) has caught the attention of Wall Street with its volatile stock price. The parent company of Truth Social completed a merger with Digital World Acquisition, but its stock has doubled and then dropped. Despite hopes of a short squeeze, the company faces challenges due to Trump’s influence, shaky financials, and operational struggles.

Trump Media’s 8-K filing lacks key performance indicators, and Truth Social’s user base is significantly smaller than Trump’s other social media accounts. With dismal sales and cash flow, the company faces cash issues and potential share dilution. Investing in Trump Media may not be wise when compared to more established and profitable social media stocks.

Meta Platforms, the parent company of Facebook and other popular social media sites, boasts a massive user base and strong financials. With $65.4 billion in cash and marketable securities, Meta has the resources to invest in new projects like Reality Labs and the metaverse. The company’s valuation is appealing, making it a better investment choice than Trump Media.

Pinterest, with nearly 500 million monthly active users, offers an attractive investment opportunity. The company has seen growth in MAUs and ARPU, making it more appealing to advertisers. Pinterest’s business model, capital reserves, and valuation make it a smarter choice for investors compared to Trump Media. Share prices are currently trading at a reasonable 20 times forward-year earnings.

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Read more at Nasdaq: Forget Trump Media: These 2 Social Media Stocks Are Considerably Cheaper and Smarter Buys