Barry Diller, the chairman of IAC and Expedia, criticized Trump Media as a “scam” and referred to people investing in its stock as “dopes.” He mentioned that the company has no revenue and accused it of being involved in various cons. Despite Trump Media’s significant market capitalization, it had minimal revenue last year and reported significant net losses in 2023. Diller likened the hype around Trump Media’s stock to the meme stock frenzy that occurred in 2021, comparing it to the surges experienced by companies like GameStop and AMC Entertainment.
He expressed disbelief at why people were buying Trump Media’s stock considering its lack of revenue and questionable value. Diller emphasized that individuals may be investing in the company for reasons beyond its financial performance, likening it to the phenomenon of investing in struggling theaters or companies like GameStop during the meme stock craze. He dismissed the idea that Trump Media could grow significantly in the future, particularly if Trump were to be elected president again, stating unequivocally that he did not believe the company had the potential for substantial success.
In response to Diller’s comments, a spokesperson for Trump Media criticized those who opposed the company, attributing their reactions to bias against Trump and the company’s commitment to maintaining political expression regardless of differing opinions. The spokesperson’s statement suggested that the backlash against Trump Media was due to its refusal to suppress content that conflicted with certain narratives. Despite the skepticism surrounding Trump Media’s business model and financial performance, the company continues to attract attention due to its association with former President Trump and its focus on the Truth Social app.
Trump Media’s initial stock price surge following its public listing has since stabilized, with shares trading at a lower value than initially anticipated. Despite this, the company maintains a significant market capitalization, raising questions about the rationale behind its valuation and investor interest. Diller’s criticism of Trump Media highlights concerns about the company’s viability and potential for long-term success, particularly given its limited revenue and substantial losses. The future trajectory of Trump Media and its ability to evolve into a more significant player in the social media landscape remain uncertain, with Diller expressing skepticism about its prospects.
