Truth Social Investors Ignored Warnings And Lost A Fortune

Investors in the Trump Media company, which owns Truth Social, were repeatedly warned about the risks of investing in the company, yet they moved forward anyway. But they weren't just being warned by smarter investors - the company itself told them that there was a substantial risk that the stock would tank due to Trump's multiple criminal trials. The investors ignored these warnings and many have now lost fortunes, according to reports. Farron Cousins explains what happened.

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*This transcript was auto-generated. Please excuse any typos.

Stock in Donald Trump's Trump media and technology group. Uh, which also, by the way, is the company that owns Truth Social. So I'm just gonna refer to it as truth social moving forward, since that's the only part of the company that actually exists. So anyway, Donald Trump's truth, social stock, ever since his criminal conviction has been on a massive downward spiral and the stock has now lost 23% of its value since the end of May when that conviction was handed down. It of course has actually now hit a new low erasing billions of dollars from Donald Trump's potential net worth. And it's all because of that criminal conviction. But it's not just Donald Trump that has lost a lot of money here. Obviously you have investors that have lost according to reports a fortune. And here's the kicker. These investors were warned ahead of time that Donald Trump's criminal cases, you know, both the pending trials and the one that was currently happening in New York, that a conviction would absolutely devastate the stock.

So these investors were told before they bought, Hey, this guy may end up going to jail or at least being criminally convicted, and that's gonna hurt the stock. Maybe don't buy it. But they weren't just told this by investors who were smarter than them. Oh no, they were literally told that by the Trump Media company. The company itself was like, Hey, you sure you wanna buy this? I mean, this guy's probably gonna get a criminal conviction, but I mean, you do what you want, but just letting you know it's gonna tank here is what, according to the New York Times, Trump media told investors before they dumped their money into the company, president Donald J. Trump is the subject of numerous legal proceedings. An adverse outcome in one or more of the ongoing legal proceedings in which President Donald J. Trump is involved could negatively impact the company as a whole and tTGs platform, truth social.

So the investors, again, it wasn't just more experienced investors, it wasn't smarter people saying, Hey, it's a bad idea. The company itself went to these people and were like, you sure you wanna buy this? Like, I don't know that I would. And these idiot investors said, you know what? Let's do it anyway. I got money to burn and burn. It has, because again, the report goes on to state that these investors have now lost a fortune. That is the word used a fortune, because the stock keeps getting lower and lower and lower. And by the way, we also have another very important date coming up on July 11th. That is, of course, the date that Judge Juan Rashan is going to hand down the actual criminal sentence for Donald Trump. And depending

On what that sentence is, actually pretty much, no matter what that sentence is, the stock is probably gonna go way, way, way, way, way down, as it has been for weeks. Now, another funny part of the story here is the fact that for a while, you know, coming up even during the criminal trial, but before the conviction itself, the stock had leveled out and it had started to go back up. It was looking better. I sat here, I did a video, I was like, I don't understand it. 'cause the company, of course is worthless. They're putting out these financial statements that say, Hey, we're in worse shape than we thought. Our auditor basically just got busted for criminal activity. They've now submitted amended audits that show the companies even worse off. And yet the stock was still going up. And then of course, the bottom fell out with the conviction.

And it is what it is today, down about a quarter of its total value. So if you're an investor out there, just know that even the company itself thinks that, thinks that it's a very stupid idea to put any money into them. Probably not just because of Donald Trump's criminal convictions, but also because they're hemorrhaging money and they have no revenue model for the future either.