Trump's Truth Social Valued at Billions Despite Modest User Base and Revenue

Trump Media & Technology Group is a new company that owns Truth Social and is very volatile, with stock recently falling over 20% in one day
The company currently has a market valuation of $6.46 billion despite having only $4.13 million in revenue in 2023
Truth Social likely has around 1.3 million monthly active users globally, implying a valuation per user of nearly $5,000 which is exceptionally high
Even using generous comparisons, the author estimates fair value below $5 per share compared to recent price over $40
The company brings "greater risks" than typical social media platforms due to former President Trump's majority ownership and involvement