Barry Diller, Chairman of IAC and Expedia, criticized Trump Media in a scathing takedown on CNBC’s “Squawk Box,” calling it “a scam” and referring to people buying its stock as “dopes.” Diller pointed out that the company has no revenue and dismissed it as yet another con associated with former President Donald Trump. In response, a Trump Media spokesperson dismissed Diller’s comments, attributing them to bias against Trump and his company’s commitment to free expression.
Trump Media, trading under the ticker DJT, saw a significant increase in its share price shortly after its debut, reaching close to $80 before settling at around $47. Despite having just $4.1 million in revenue and reporting net losses of $58 million in 2023, the company’s market capitalization stands at $6.4 billion. Diller likened the surge in Trump Media’s stock price to the meme stock frenzy of 2021, referencing GameStop and AMC Entertainment as examples of similar situations.
Diller criticized those buying Trump Media’s stock, questioning the valuation of a company with such minimal revenue. He dismissed their investment decisions as driven by factors other than financial fundamentals, comparing it to the buying spree of theaters and GameStop during periods of little to no business activity in those industries. Diller expressed skepticism about Trump Media’s potential for growth, asserting that it is unlikely to become a larger business even if Trump is reelected as president.
Diller’s remarks reflect a broader skepticism about Trump Media and the motivations behind its soaring stock price. He dismissed the company’s prospects for growth and profitability, emphasizing the lack of revenue and substantial losses reported. Diller’s critical assessment of Trump Media aligns with his view of it as a questionable enterprise associated with Trump, echoing similar concerns raised by other critics.
Despite the controversy surrounding Trump Media and its stock performance, the company continues to attract attention and investment. Trump’s involvement in the venture adds a layer of complexity and potential volatility to its trajectory. As the situation unfolds, it remains to be seen how Trump Media will navigate its challenges and whether it can overcome the skepticism and doubts expressed by individuals like Barry Diller.
