The former president's media company announced a merger last week.
Donald Trump's stock could collapse when his social media platform Truth Social goes public, experts have suggested.Shareholders of Digital World Acquisition Corp. , an existing shell company, agreed to merge with Trump Media and Technology Group on Friday, clearing the way for the former president's company to go public.Wall Street values Trump Media at around $9 billion. However, experts suggest the price will soon plummet.'This is a very unusual situation.
There is no evidence this is going to become a large, highly profitable company,' he said. 'I'm reasonably confident the stock price will eventually drop to $2 a share and could even go below that if the company blows through the money it got from the merger.''At these levels, it appears untethered to its underlying business results,' Matthew Kennedy, senior IPO strategist at Renaissance Capital, told CNN. 'Eventually, valuations tend to fall back on fundamentals.
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