🤯 Trump’s Truth Social Jumps ~80% to $8B valuation

Plus, OpenAI Can Now Clone Your Voice & Krispy Kreme and McDonalds Team Up...

📈 Trump’s Truth Social Jumps ~80% after Nasdaq Debut

“I’ve never seen anything like it”

Those were the words of Thomas Hayes, chairman of ~$5B Private Equity Fund Great Hill Capital, and a sentiment echoed by many on Wall Street after watching Truth Social surge nearly 80% on its stock market debut to an over $8B valuation.

The company went public on Monday via a merger with blank-check company Digital World Acquisition Corp and is now listed on the NASDAQ under the ticker $DJT.

💬 What is Truth Social?

Created in February 2022, ~12 months after Trump was removed from major platforms like Facebook and Twitter, Truth Social describes itself as “America's ‘Big Tent’ social media platform that encourages an open, free, and honest global conversation without discriminating on the basis of political ideology.”

As you can see below, the platform is quite similar to Facebook. The IOS App has a 4.6 rating on the US App Store across 115K ratings and was ranked #14 in Social Networking at the time of writing.

📊 Only $3.4M in Revenue?!

Let’s ignore politics for a second and look at Truth Social as a company. Here are some key metrics from the first 9 months of 2023:

  • Revenue: $3.4M

  • Net Loss: -($49M)

  • Total Users: 8.9M

  • Monthly Visitors: 1.48M

That means Truth Social is currently valued at over 1800x revenue 🤯. In comparison, Reddit, Meta, Pinterest, and Snapchat hover around ~5-10x revenue.

Looking at monthly usage, Meta’s platforms have ~2000x the monthly visitors of Truth Social.

🤑 Fun Fact: Truth Social is currently valued at ~$5700 per monthly visitor. Based on this valuation, Blossom would be worth over $255M 🤯

🤪 Firmly in Meme Stock Territory

The mismatch between the stock and the company’s fundamentals places it “meme stock” territory, similar to stocks like Gamestop, Blackberry, and Bed Bath & Beyond.

This doesn’t mean the stock is set to crash anytime soon, it could very well continue to rise. Don’t forget that hedge funds lost ~$20B betting against GameStop (which arguably also had horrible fundamentals).

With meme stocks, all you need is enough people to believe the company goes beyond normal investment criteria, and Truth Social certainly fits that bill.

Many experts argue that enthusiasm for Trump is a key driver of the stock, with thousands of his supporters piling on to support the former president.

“The valuation at this stage is completely detached from business reality, but it’s not really about business—these investors are just betting on Donald Trump.”

Niamh Burns, Analyst at Enders Analysis

🤔 What does this mean for Trump?

💰 With Trump owning ~60% of the company, his stake is now worth over $5B, putting him on the list of the 500 richest people in the world.

With Trump now owing over $175M after legal troubles, this massive boost in wealth is a big turn of fortune for the former president. However, while rich on paper, Trump won’t be able to sell their stock for six months due to a lock-up period. It’s also unclear whether Trump would be able to sell without tanking the stock.

💰 Is Truth Social a Buy?

In short - who knows 🤷‍♂️

As discussed, the stock has diverged so far from its fundamental value, so regular investing concepts don’t really apply here.

Buying Truth Social (or any meme stock) is really more akin to gambling than investing. You can stand to gain a lot or lose a lot - so make sure you can stand to lose whatever you put in!

“Like any meme stock or fad, as long as there’s a greater fool to buy you out for what you paid for it, than you can continue to prosper”

- Brian Dunn, Director of the Institute for Compensation Studies at Cornell

🎁 5% Interest + Exclusive Offer From KOHO

KOHO, a Canadian fintech loved by over 1 million users, is offering a special offer to the Blossom community - $20 on sign-up + 3 months free of the KOHO extra plan with code KOHOBLOSSOM.

KOHO works like a debit card but gives cash back like a credit card and helps you build credit.

Here’s why it’s worth checking out:

  • 💰 Earn 5% interest on cash balances

  • 🍔 Earn 2% cash back on groceries, eating & drinking, and transportation

  • 🛍️ Earn up to 5% cash back on selected merchants

  • 💱 No FX fees

😱 OpenAI Can Now Clone Your Voice in 15 Seconds

AI has evolved rapidly since the release of ChatGPT on November 30, 2022, and now a massive (and scary) new development has been announced - OpenAI can now clone your voice with only a 15-second sample 🤯

Surprisingly, OpenAI has decided against a public rollout of the features after safety concerns, specifically around the potential for the technology to be used in deep fakes and scams.

“We recognize that generating speech that resembles people’s voices has serious risks, which are especially top of mind in an election year”


🚨 The Dangers of AI Voice Engines

It’s no doubt that AI has opened up a new wave of sophisticated scams. Money lost to scams in the US hit a record high in 2024, topping $10B.

Here are some examples of how AI Voice Engines have been used to scam and defraud:

The Benefits of AI Voice Engines

Even so, AI Voice Engines can unlock a ton of value across many business applications.

  • The Norman Prince Neurosciences Institute is helping brain tumor patients recover their voice

  • Spotify is translating podcasts into different languages

  • Age of Learning provides real-time personalized responses to students written by Chat-GPT.

“If you have the right audio setup, it’s basically a human-caliber voice. “It’s a pretty impressive technical quality.”

Jeff Harris, Product Lead at OpenAI

⏭️ Next Steps

OpenAI is taking several steps to limit the risk and prepare the tech for a broader rollout. One is installing an inaudible audio watermark to help distinguish whether a piece of audio uses the tool. OpenAI also restricts its current partners from mimicking a voice without consent.

While OpenAI has held off for now, I’m sure this technology is coming soon - are you ready for it 👀

🥳 Follow Blossom On Socials!

If you like the Weekly Buzz 🐝 make sure to follow Blossom on our socials where Brandon and the Blossom ambassadors make tons of informative short-form videos about topics ranging from best dividend stocks, beginner tips, and other fun content about the stock market! 😊

P.S. We love it when you guys tag us on socials! Really appreciate all of you who have been sharing the love and telling your friends about Blossom 🙌 

🍩 Krispy Kreme Stock Up 23% After McDonalds Team-up

🍩 Did you know Krispy Kreme is public? Well you do now!

Trading under the ticker $DNUT, the company rose to an over $2.5B valuation this week after announcing a partnership with McDonalds that will soon see its donuts sold in the McCafé across the USA, more than doubling the locations where it’s donuts are sold.

Krispy Kreme investors loved the news, driving the stock up 23% this week. McDonald’s investors didn’t seem to care much, with the stock ending the week down ~0.7%.

🔬 A Successful Test

McDonald's and Krispy have been testing the concept in 160 restaurants across Kentucky and Indiana, and they clearly were pleased with the results.

With a phased rollout, Krispy will deliver 3 flavors of donuts to McDonald stores daily, available individually or in boxes of 6.

Krispy Kreme's CEO says the company currently has the supply chain to service 6,000 McDonald’s restaurants and will be working to build up infrastructure to support all 13,500 locations. Nationwide availability is expected by the end of 2026.

📈 Boosting Revenue and Brand

In 2023, Krispy Kreme posted 10% revenue growth to $1.68B and 11% growth to EBITDA to $211M.

With the stock down ~20% over the past 5 years and 2% over the past 12 months, the partnership is a much-needed win for the company.

“The top request we receive from consumers, is ‘please bring Krispy Kreme to my town.’ Partnering with McDonald’s on a national scale will provide unprecedented daily access to fresh doughnuts and the joy that is Krispy Kreme”

Krispy Kreme President and CEO Josh Charlesworth

🎙️ Top Discussions this Week

👇 Click to see the full post!

🗞️ What else you might’ve missed: