'If he loses, the billions fizzle': WSJ columnist sounds alarm for Truth Social investors

Investors who jumped on the Trump Media & Technology Group Corp. stock this week despite warnings that the company may never be profitable were put on notice Thursday morning by Wall Street Journal columnist Daniel Henniger that the fortunes of the company are subject to not only the whims of the Donald Trump, but what the future has in store for him.

After taking a big stumble at the start of the week, the stock has since stabilized, but the long-term prospects are anything but certain.

Put simply, Henniger explained, the whole production could fall apart if the embattled former president flops with voters in November in which case, he predicted, "If he loses, the billions fizzle."

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Writing that "Mr. Trump’s politicized investors probably don’t care if they lose money," he added it would be a certainty if the Trump-appointed board of the company gave him a waiver on the six-month holding period before he could sell off some his shares to pay his tsunami of legal bills.

Beyond that, he noted, even if Trump is re-elected, the stock would be subject to extraordinary volatility based on what he does when returned to the Oval Office.

"Could the company’s value become tied to Mr. Trump’s approval ratings, with that driven by decisions he makes, or is rumored to make, on tariffs, Ukraine, China and Russia?" he suggested.

"The idea that Mr. Trump would put Truth Social in a trust or behind a firewall makes little sense. Public consumption of his middle-of-the-night Twitter posts were inseparable from his presidency. Truth Social’s upside would turn on Mr. Trump’s ability to drive up the number of his followers with presidential controversies, real or manufactured."

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