Yahoo Finance Joe Biden's 'Broke Don' Nickname For Trump Looks Premature As Trump's Stake In DJT At $2.9 Billion, Barry Diller Calls DJT Buyers 'Dopes'
During the 2020 election cycle, former President Donald Trump gave President Joe Biden the nickname "Sleepy Joe." Now, as one Democratic strategist described, Biden is trying to "out-Trump Trump" by testing giving the former president a nickname of his own.
Biden has called Trump "Broke Don" in an attempt to mock his mounting legal fees and relatively smaller campaign fundraising efforts to date.
Even with the recent pullback in Trump Media & Technology Group Corp. (NASDAQ:DJT), which owns social media service Truth Social, Trump's stake in the company is at $2.9 billion.
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He can't access those funds right away. According to Europa Group analysts, "Trump cannot sell his stock in the company for six months, making it difficult to translate Truth Social’s value into liquid cash that can be spent on the campaign."
Barry Diller, chairman of IAC Inc. (NASDAQ:IAC) and Expedia Group Inc. (NASDAQ:EXPE) had harsh words for Trump Media buyers, telling CNBC that the stock is a "scam" and being bought by "dopes."
After dismissing Trump Media's valuation, Diller compared the stock to GameStop Corp. (NYSE:GME) saying that people are "buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop."
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GameStop stock soared from the mid-teens to an all-time high of $483 per share in a month, fueled by a retail investor-induced short squeeze.
Given the extreme short interest in Trump Media, there could be some parallels. According to data provider S3 Partners, new short sellers need to pay an annualized borrowing fee of 900%, requiring the stock to fall 2.5% every day just to break even.
The massive short interest comes alongside significant controversy in the stock.
Two early investors in Truth Social pled guilty to an insider trading scheme that netted them over $22 million in profits in advance of the special purpose acquisition company (SPAC) merger.
Trump recently sued Truth Social's co-founders, alleging they made a "series of reckless and wasteful decisions at a critical time" in an attempt to take their stakes in the company, according to Bloomberg.
It's still not scaring off some believers. One supporter on a DJT group on Truth Social wrote, "They don’t like President @realDonaldTrump and his policies, especially his creation, Truth Social, so they are trying to destroy his company, DJT."
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