Donald Trump’s Truth Social looks set to hit Wall Street in a move that could give him stock worth billions of dollars on paper. Reddit and Trump Media are the first notable social media companies to begin trading publicly in the last five years. They're also, thanks to the rabid reception among investors coupled with the companies' fuzzy profit outlooks, the latest meme stocks.
Analysts and academics are comparing the surge in Reddit and Trump Media to the meme stock craze in 2021 that boosted shares of companies such as video game retailer GameStop and movie theater operator AMC Entertainment. Although there are differences between the two groups, the companies did have two prominent similarities: It was hard to look at the financials and predict a path to long-term profitability. But small investors bought in nonetheless.
Granted, GameStop had the backing of Ryan Cohen, founder of the e-commerce pet food company Chewy, who investors likely thought could modernize GameStop's business. But a number of investors were individuals who belonged to the Reddit community Wall Street Bets and bought shares in order to “stick it to” to big institutions that had made bets the stock would drop. As the stock took off, even more investors seized the opportunity to buy.
Following the release of GameStop's earnings report Tuesday, Michael Pachter, an analyst at Wedbush Securities, wrote in a note to investors that steeper revenue declines for the company could lead to large losses and possibly bankruptcy.Even so, Pachter is even more skeptical of the fervor over Trump Media in the market. He notes that GameStop had revenue of more than US$5 billion back in 2020 while Trump Media's revenue is under US$5 million.
Despite Alberta's police watchdog concluding charges could be laid against Mounties who arrested a teen with autism under the belief he was a drug user, no charges will be laid.Three men in their 30s died after an apparent avalanche Tuesday during a snowmobiling expedition on Quebec's Gaspe Peninsula.B.C.
With the 2024 Olympic and Paralympic Games in Paris on the horizon, Canada's athletes are asking for a $6.3-million raise to the Athletes Assistance Program, which is informally known as “carding” money, in the federal government's April 16 budget.Officers say 48 vehicles with a combined value of just under $4 million were recently seized as part of a Toronto police investigation focused on the trafficking, shipping, and re-vinning of stolen vehicles.Ontario woman shocked when U.S.
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