Tesla Inc. bull Ross Gerber has expressed skepticism about the valuation of former President Donald Trump’s newly-listed media company, Trump Media & Technology DJT.
What Happened: Gerber took to X, formerly Twitter, to share his thoughts on the valuation of Trump’s media company.
He believes that the current valuation presents a great opportunity for short sellers like Hindenburg Research and Muddy Waters Research.
“A wonderful opportunity has arisen for @HindenburgRes @muddywatersre $djt."
Gerber’s comments come in the wake of Trump's media company’s recent listing amid widespread skepticism about its valuation.
Notably, financial commentator Herb Greenberg recently suggested that the company would be considered a penny stock if not for Trump’s name.
This was during a segment on CNBC's "Last Call" on Wednesday, 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 calling it "overhyped."
See Also: Can Trump Sell His Truth Social Stock To Pay Bills? His Son Could Be The Answer
Why It Matters: Gerber comments came after Hindenburg last week targeted data center firm Equinix Inc. in a new short report. The short seller claims Equinix inflated its profitability metrics and pitched investors an "AI pipe dream," while insiders backed out of the stock.
In 2023, It alleged that Jack Dorsey’s Block had overstated its user growth while understating costs for acquiring customers. Moreover, it suggests that 40% to 75% of accounts could be fake. “Block Inc., formerly known as Square Inc., is a $44-billion market cap company that claims to have developed a ‘frictionless’ and ‘magical’ financial technology,” Hindenburg wrote
Trump’s media company has been the subject of much debate since its public debut.
Despite the company being valued at approximately $5 billion, experts have urged caution, highlighting Trump's history of financial failures and the modest user base of Truth Social compared to its rivals.
This was highlighted by MSNBC's Helaine Olen, who warned investors eager to support former President Donald Trump's social media venture, Truth Social, may face disappointment.
Price Action: At the time of writing, Trump Media & Technology was up 12.02% at $64.96, according to Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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