Trump Media is “a scam,” and individuals who buy its high-flying shares are “dopes,” IAC and Expedia Chairman Barry Diller said Thursday in a stinging attack on the social media business, whose primary shareholder is former President Donald Trump.
“I mean, it’s ridiculous,” Diller said on CNBC’s “Squawk Box” when questioned about Trump Media. “The company has no revenue.”
“It’s a scam, just like everything he’s ever been involved in is some sort of con,” Trump remarked in an interview.
In response to Diller’s comments, a Trump Media spokeswoman said, “It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression that contradicts the narratives they want to enforce.”
CNBC has asked response from Trump’s spokeswoman, who is the probable Republican presidential contender.
When Trump Media began trading under the symbol DJT last week, its stock price skyrocketed by roughly 50% to nearly $80 before stabilizing. As of Thursday morning, Trump Media shares were trading at roughly $47.
That gives the company a stunning $6.4 billion market value despite the fact that it only made $4.1 million in sales last year, and its business is centered on the Truth Social app, which has much fewer users than big social networking networks.
On Monday, Trump Media announced a net loss of $58 million in 2023.
He contrasted Trump Media’s price increase to the “meme stock” frenzy in 2021, when the price of GameStop jumped to about $500 per share and AMC Entertainment, a movie theater company, had its share price skyrocket to over $700.
In early trading Thursday morning, GameStop shares were selling for less than $12 per share, while AMC shares were selling for slightly more than $3.
“I think they’re dopes,” Diller replied when asked why people are buying the company’s stock.
“Who would acquire a company with only $30 in revenue? Who could place a value on that?” Diller asked.
“They’re buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop, whatever.”
“That’s foolish. “Stupid stuff,” he remarked.
When asked if Trump Media could ever become a larger corporation than it is presently, especially if Trump is elected president later this year, Diller simply answered, “No… no.”
“Look, he’s only interesting now because he’s out there entertaining the folks,” he added. “I hope if he gets elected he just plays golf for four years.”