Florida supporter Justin Pidding was outraged when a New York jury found former President Trump guilty.
So he decided to take a stand: buy more stock in Trump’s social media companies and encourage others to do the same.
“It’s time to show them what DJTArmy is all about!!! Buy more today,” Petin wrote in Truth SocialI shortly before trading began on Friday.
Petin is part of an army of Trump supporters who own stakes in Trump Media & Technology Group, the company behind Truth Social.
Many backers invested despite constant warnings from professional investors that the company was losing money and generating little revenue.
Now, at a time when many investors would typically flee a former president’s conviction, Trump Media shareholders have vowed to redouble their outrage over what they see as a wrongful conviction.
Their efforts to boost the stock price were unsuccessful, at least on Friday. After opening up about 15%, the stock ended the day down 5%.
But Trump Media shareholders were undeterred and vowed to persevere.
Trump Media stock made its stock market debut for the first time since its merger with a publicly traded shell company in March, the latest twist in its share price volatility.
For those who invested early, it has been a very profitable journey so far. But no one benefited more than former President Trump.
Now, whether those shareholders decide to hang on will determine the fate of a company considered a dud by many on Wall Street.
A lot of money is at risk
Trump relies heavily on Trump media. He owns nearly two-thirds of the company.
Despite Friday’s blow, Trump’s holdings are still worth $5.6 billion – a windfall that earlier this year propelled him onto the Bloomberg Billionaires Index for the first time.
That’s an incredible value for a company that lost more than $300 million in its first quarter and has almost negligible revenue. It had just under 700,000 monthly active users in April, according to Sametimeweb, while X had more than 76 million monthly active users.
Trump’s newfound wealth is all thanks to hundreds of thousands of investors buying into Trump media, many of whom came to express support for former President Trump.
Justin Pidding is one of them
Petting became a Trump supporter in 2015. He quit his sales job at a Maryland call center. He said he left the United States partly to escape America’s racial strife and partly to reconnect with his Jewish roots.
“I thought, if I can help bring peace there, you can bring peace anywhere,” he said.
Pittin voted for Trump twice and believes the world needs Trump now more than ever. That’s why he also decided to invest in Trump Media.
“Unfortunately, the world is not all about hugs and kisses. Some people do want to cause harm. We need strong leadership,” he said. “I’m scared about the future. So, 2024 is a big year. That’s why I’m invested in this, you know?”
The appeal of truth society
Peedin is a big fan of Truth Social. He and others have escaped censorship on the platform from rivals like X and Facebook.
Peedin believes Truth Social will be a very valuable company if the former president returns to the White House in November.
“I think he has a good chance of winning again. If he just uses this platform, I think the sky’s the limit,” Pidding said. “And I also believe in it, which is very rare, to invest in something that you believe in so much.
So far, that belief has brought him considerable profits—at least on paper.
Peedin got involved early, investing just over $50,000. He paid about $35 on average. Trump Media currently trades at $49, and Pittin has made about $20,000 in paper gains — quite a lot for a stock that media mogul Barry Diller recently called a “scam.” s return.
Petin said he bought some more stock on Friday, the day after Trump was convicted.
Pidding said that even if he lost everything, he would still be able to provide for his wife and children.
“I’m not going to gamble my son’s diaper money, you know?” he said.
Wall Street isn’t impressed
Not everyone is making money on Trump media.
The stock is incredibly volatile on a daily basis. Prices are now slightly lower than they were the day before the debut, But they have paid off handsomely for those who invested early, like Petin.
Many professional investors have sounded the alarm about the stock, which trades at a much higher valuation than its financial performance warrants, despite the multiple risks facing Truth Social.
The company is trying to expand into online video and has said it plans to grow through mergers and acquisitions, but the results of either approach could be disastrous.
Most importantly, professional investors warned that the company’s fate was closely tied to former President Trump, who was convicted of 34 felonies and is due to be sentenced in July.
Trump faces several other state and federal criminal cases, and the stock’s performance could be directly affected by his electoral fortunes in what is expected to be a tight presidential race.
Trump’s bet
There are more risks looming. Trump may one day cash out and exit the company — which could hurt shareholders like Pidding.
Trump cannot yet sell his stock. Under his current deal, he must keep those contracts until September, during the presidential campaign. But Trump Media’s board, which is filled with friendly voices such as his son, Donald Trump Jr., may have given him permission to sell sooner.
None of these risks, however, faze Peedin.
Even after Trump was convicted, he still believed that Truth Social was a startup with huge potential. He has an unwavering faith in the former commander-in-chief and believes Trump will not hurt supporters like him by cashing out companies.
“I think he truly cares about the people who support him,” he said. “Because if you look closely, it’s kind of like stabbing everybody in the back. I don’t think he would do that.