Trump Media shareholder Justin Peedin said he plans to stand with Trump despite the former president’s historic conviction.
Courtesy of Justin Peedin
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Courtesy of Justin Peedin
When a jury in New York convicted former President Trump, supporter Justin Peedin in Florida was outraged.
So he decided to stand firm: By buying more shares in Trump’s social media venture — and encouraging others to do the same.
“It’s time to show them what DJTArmy is all about!!!! Buy more today and hollllllld,” Peedin wrote on Truth SociaI a little before trading begins on Friday.
Peedin is part of a group of Trump supporters who own shares in Trump Media & Technology Group – the company behind Truth Social.
Many backers invested despite all the warnings from professional investors about a company that was losing money and had little revenue.
And now, at a time when many investors would typically flee because of the former president’s conviction, Trump Media shareholders are vowing to double down on their anger over what they see as a misguided verdict. Justice.
At least as of Friday, their efforts to boost the stock price were unsuccessful. After an initial opening around 15%, shares ended the day down 5%.
But far from being discouraged, Trump Media shareholders vowed to persevere.
It’s the latest twist in a string of volatile moves for Trump Media stock since its stock market debut in March by merging with a listed shell company.
For those who invested early, it has been a remarkably lucrative ride so far. But no one benefited more than former President Trump.
And now, whether these shareholders decide to continue or not will determine the fate of a company that many on Wall Street have criticized as stupid.
A lot of money is at stake
Trump has a lot of power in Trump Media. He owns nearly 2/3 of the company.
Despite the hit on Friday, Trump’s stake is still valued at $5.6 billion — a windfall that landed him on the Bloomberg Billionaires Index for the first time earlier this year.
That’s a staggering value for a company that lost more than $300 million in the first quarter and has almost negligible revenue. According to data from Similarweb, it also had just under 700,000 monthly active users in April, compared to more than 76 million for X.
Trump’s newfound wealth is all thanks to the hundreds of thousands of investors who bought into Trump Media, many of them to show support for former President Trump.
Donald Trump attends his criminal trial at Manhattan Criminal Court in New York City on May 29, 2024.
Doug Mills-Pool/Getty Images
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Doug Mills-Pool/Getty Images
Justin Peedin is one of them
Peedin became a Trump supporter in 2015. He was teaching English in an Arab village in Israel. He left the sales contract at a call center in Maryland. He said he left partly to escape racial strife in America and partly to reconnect with his Jewish heritage.
“I thought if I could help make peace there, you could make peace anywhere,” he said.
Peedin voted for Trump twice and he 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 just hugs and kisses everywhere. There are people who really want to do harm. And we need strong leadership,” he said. “I fear for the future. So 2024 is an important year. And that’s why I invested in this, you know?
The appeal of Truth Social
Peedin is a big fan of Truth Social. It’s a platform where he and others have found freedom from what they see as censorship by rivals like X and Facebook.
And Peedin believes that if the former president returns to the White House in November, Truth Social will become an extremely valuable company.
“I think he has a good chance to win again. And if he’s just using the platform, I feel like there’s a limit to it,” Peedin said. “And I believe in that too, which is very rare when investing in something you believe in so much. “
Trump Media is losing money and has little revenue.
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Scott Olson/Getty Images North America
That belief has earned him quite a profit so far – at least on paper.
Peedin got in early and invested just over $50,000. He pays an average of about $35. With Trump Media currently trading at $49, Peedin is sitting on a paper profit of about $20,000 – a sizable profit for a stock that media mogul Barry Diller recently called ” Cheat”.
Peedin said he bought some more shares on Friday, the day after Trump was sentenced.
If he lost everything, Peedin said he could still put food on the table for his wife and children.
“I don’t gamble my son’s diaper money, you know?” he says.
Wall Street is not impressed
Not everyone makes money from Trump Media.
The stock has been incredibly volatile on a daily basis. Now their prices are a bit lower than the day before launch, but they have brought good returns to early investors like Peedin.
Many professional investors have warned about the stock, which is trading at a valuation well above its expected financial performance – despite the many risks Truth Social faces.
The company is trying to expand into online video and has said it plans to grow through mergers and acquisitions, both of which could go awry.
Most importantly, professional investors warn that the company’s fortunes are tied to former President Trump, who will be sentenced in July after being convicted of 34 felony charges.
Trump also still faces a number of other state and federal criminal cases, and the stock’s performance could be directly affected by his electoral fortunes during the presidential campaign is expected to be stressful.
Trump’s shares
There are even more risks lurking. One day Trump could cash in and bail out the company — which could hurt shareholders like Peedin.
Trump cannot yet sell his shares. Under the current agreement, he must keep them until September, right in the middle of the presidential campaign. But he may be allowed to sell even sooner by Trump Media’s board, which has many friendly voices, like his son Donald Trump Jr.
None of these risks worry Peedin, however.
He still believes that Truth Social is a startup with huge potential even after Trump’s conviction. He has unwavering faith in the former commander in chief — and he believes Trump won’t hurt supporters like him by pulling money out of the company.
“I think he really cares about his supporters,” he said. “Because if you look at it, it’s like stabbing people in the back. And I don’t see him doing that.”
