Trump Media is “a scam,” and people buying its high-flying stock are “dopes,” IAC and Expedia Chairman Barry Diller said Thursday in a scathing takedown of the social media company whose majority shareholder is former President Donald Trump.
“I mean, it’s ridiculous,” Diller said on CNBC’s “Squawk Box” when asked about Trump Media. “The company has no revenue.”
“It’s a scam, just like everything he’s ever been involved in is some sort of con,” he said of Trump.
A Trump Media spokeswoman, in response to Diller’s comments, said, “It is unsurprising to see die-hard Trump haters and leftwing flacks blow a gasket now that Truth Social has become a public company that, still today, refuses to suppress political expression that contradicts the narratives they want to enforce.”
CNBC has requested comment from a spokesman for Trump, who is the presumptive Republican presidential nominee.
When Trump Media began trading last week with the ticker DJT, its share price rocketed up about 50% to nearly $80 before settling down. As of Thursday morning, Trump Media shares were selling for nearly $47.
That gives the company a whopping $6.4 billion market capitalization despite the fact it had just $4.1 million in revenue last year, and its business is focused on the Truth Social app, which has significantly fewer users than major social media platforms.
Trump Media on Monday reported it had net losses of $58 million in 2023.
He compared the price run-up of Trump Media to the “meme stock” frenzy in 2021, when the price of GameStop soared to nearly $500 per share and AMC Entertainment, the movie theater company, saw its share price skyrocket to more than $700.
GameStop shares were selling for less than $12 per share in early trading on Thursday morning, and AMC shares for just over $3.
“I think they’re dopes,” Diller said when asked why people are buying the company’s stock.
“I mean, who would buy a company that literally, what does it have, $30 of revenue? Who could put a value on that?” Diller asked.
“They’re buying it for other reasons, just like they bought theaters when there was no theater business or bought GameStop, whatever.”
“It’s stupid. Stupid stuff,” he said.
Asked if Trump Media could ever become a bigger business than it is now, particularly if Trump is elected president later this year, Diller flatly replied: “No … no.”
“Look, he’s only interesting now because he’s out there entertaining the folks,” Diller said. “I hope if he gets elected he just plays golf for four years.”