Technology
Why Trump’s digital media company is different from other loss-making startups
Former President Donald Trump’s digital media company is losing money, and a number of it. But how is this different from other “startups” that usually struggle to show a profit for years, in the event that they manage to achieve this in any respect?
There are several reasons.
First, as a summary: Trump Media and Technology Group recently merged with Digital World Acquisition Company, making a SPAC – a financial instrument that is most frequently a final likelihood for a major money injection. The company is listed on NASDAQ, as you may expect, $DJT.
An necessary a part of going public is revealing your funds to the world, and more recently TMTG submitted its first quarterly financial report from the SEC that anyone can view and analyze. The financial press is having quite a lot of fun, however the result is that TMTG is losing quite a lot of money and generating no profits. Specifically, the company lost $58 million on just $4 million in revenue.
Those inclined to indicate charitable support for a tech startup difficult entrenched rivals – no matter its “mission” or leadership – might reasonably note that this imbalance is common amongst early-stage firms with big ambitions. And that is right – who can forget that Uber has been making huge losses for years to undermine the taxi industry’s business model?
TMTG is superficially similar, primarily since it doesn’t earn a living. However, this doesn’t mean that it is a startup on the verge of explosive growth. There are three big, easy reasons:
- TMTG is not growing. Truth Social, TMTG’s most important business, has not attracted greater than just a few million users. It hasn’t shown the traction that any startup would have to indicate to suggest it’s the following big thing or anything in any respect (as others have noted, Twitter had $665 million in annual revenue on the time of its IPO). . Incredibly low revenues tell us that the one source of income, advertisers, don’t want to pay for the dimensions of the audience. And there is no reason to expect this to vary.
- TMTG doesn’t have a VC runway. Venture capital is a high-risk, high-reward strategy through which essentially unprofitable firms are supported until something changes they usually can earn a living. This gives startups the liberty to take dangerous actions like overstaffing, undercharging, and throwing the “business model” out of the way in which, sometimes without end. If investors are confident and the product has traction – like Uber – they’ll pump billions into it because they’re sure that they’ll eventually pay it back. But in his current precarious state, Trump could be a dangerous selection even for VCs. But this is all moot because:
- TMTG is now accountable to its shareholders. Small startups could have to report back to their VC principals from time to time, but they’ve leeway in comparison with public firms which have fiduciary duties to their shareholders. Although Trump is TMTG’s largest shareholder with a 60% stake, the remaining 40% is closely awaiting any violations of this obligation – akin to a stock sale or a loan that drastically reduces the company’s value. But the necessary thing is that TMTG doesn’t have the liberty to throw across the money (it doesn’t have any anyway) or take risks. The basic idea of going public is that you could have a company that others wish to share – TMTG just doesn’t do this.
As a result, as analysts have already noted, the DJT dollar is fundamentally and wildly overvalued. The company is unlikely to show a profit anytime soon, let alone enough profit to justify its share price and multi-billion dollar valuation. Even probably the most optimistic scenarios likely include solvency as a distant goal.
On the other hand, given the bulk owner’s personal, political, legal and business problems, there is a really real risk that the entire thing will collapse before the tip of the 12 months.
The fact is that the stock price is completely unrelated to the company’s performance, making it essentially a “meme stock” that will likely be priced arbitrarily and possibly manipulated by public investors.
While this may increasingly earn a living for day traders and short sellers over the following few days and weeks, it is not the form of thing that holds value over the long run, especially within the absence of TMTG assets. By the time Trump is in a position to sell his shares, the company’s value will likely be much like what it is today. That’s not even price what it was this morning, when shares dropped greater than 20% for the reason that market opened.
Technology
Department of Justice tells Google to sell Chrome
Welcome back to the week in review. This week, we take a look at how the Department of Justice ordered Google to sell Chrome to break its monopoly, whether OpenAI by chance deleted potential evidence in a copyright lawsuit filed by The New York Times, and the way artificial intelligence corporations are exploiting TikTok for research purposes. Let’s do it.
The U.S. Department of Justice argued that Google should get rid of its Chrome browser to help break the corporate’s illegal monopoly on online search. U.S. District Court Judge Amit Mehta ruled in August that Google is an illegal monopoly for abusing its power within the search industry, and the Department of Justice’s latest filing says Google’s ownership of Android and Chrome poses a “significant challenge” to pursuing countermeasures aimed toward establishing a competitive search engine market.
Anthropic raised a further $4 billion from Amazon and agreed to make Amazon Web Services the first training site for its flagship generative artificial intelligence models. Anthropic can be working with Annapurna Labs, AWS’s chip manufacturing division, to develop future generations of Trainium accelerators, custom AWS chips for training artificial intelligence models. Amazon’s recent money injection brings the tech giant’s total investment in Anthropic to $8 billion.
OpenAI by chance deleted potential evidence in The New York Times and Daily News’ copyright lawsuit, say the publisher’s lawyers. As part of the lawsuit, OpenAI agreed to provide two virtual machines so the lawyer could seek for copyrighted content in its AI training kits. However, within the letter, lawyers for the publishers claim that OpenAI engineers deleted all publisher search data stored on one of the virtual machines.
News
Kim Kardashian meets Optimus: The fashion mogul had hands-on experience with Tesla’s bipedal humanoid robot. In videos posted to X, Kardashian encourages Optimus to make a heart out of his hand, dance like he’s at a luau and play rock, paper, scissors. Read more
Oura’s valuation exceeds $5 billion: The smart ring maker has received a $75 million investment from glucose device maker Dexcom. The investment, which constitutes Oura’s Series D financing round, raises the corporate’s valuation to over $5 billion. Read more
Let’s organize a celebration for Partiful: The customizable event planning app challenges legacy solutions like Evite, Eventbrite, and Facebook Events, is a favourite amongst Gen Z users, and was just named a top app of 2024 by Google. Read more
Talk to me in your language: Microsoft will soon allow Teams users to clone their voices so that they can talk to others in up to nine languages: English, French, German, Italian, Japanese, Korean, Portuguese, Mandarin Chinese and Spanish. Read more
Hackers attack Andrew Tate: According to The Daily Dot, hackers breached a web-based course founded by an influencer and self-confessed misogynist, exposing data on nearly 800,000 users. Tate is currently under house arrest awaiting trial on sex trafficking and rape charges. Read more
What makes a bank a bank? The U.S. Consumer Financial Protection Bureau has ruled that each one digital services that handle significant volumes of transactions needs to be subject to bank-style supervision, which could impact Apple Pay, Cash App, Google Pay, PayPal and Venmo. Read more
A more conversational Siri: According to sources cited by Bloomberg, Apple is developing a new edition of Siri based on advanced multilingual models in an attempt to meet up with more natural-sounding competitors comparable to Google Gemini Live. Read more
Making Money With TikTok Brains: Several AI-powered research tools are taking advantage of the “PDF to Brainrot” trend, during which the text of an uploaded document is read in a monotone voice against a backdrop of “weirdly satisfying” vertical videos like Subway Surfers gameplay. Read more
Threads attacks Bluesky: As Bluesky’s user base surpasses 20 million, Instagram Threads has begun rolling out a brand new feature called custom feeds to capitalize on user demand for more personalization. Read more
ChatGPT within the classroom: OpenAI has released a free online course to help elementary and middle school teachers find out how to introduce ChatGPT into their classrooms. However, some educators are concerned about this technology and its potential for error. Read more
Do we want one other day by day word game? Normally I’m an evangelist for word games and crosswords, but I feel like we’re quickly approaching market saturation. Netflix has launched a brand new day by day word puzzle game in partnership with TED called TED Tumblewords. Read more
Analysis
Please don’t send X-ray images to the chatbot: People often turn to generative AI chatbots to ask questions on their health concerns and higher understand their health. Since October, X users have been encouraged to upload their X-rays, MRIs and PET scans to the AI-powered chatbot, Grok, to help interpret the outcomes. Medical data is a special category subject to federal protections that, usually, only you may circumvent. But simply because you may does not imply you need to. As Zack Whittaker writes, it’s price remembering that what goes on the Internet never leaves it. Read more
Technology
How the digital “you” can withstand your torturous online conference calls
Now you can appear like you are on a Zoom call in your office, even whilst you’re sipping a margarita in a hammock far, far-off. Courtesy of a several-month-old startup called Marinadethe premise is easy: upload a five-minute training video of you creating an avatar, and 24 hours later you may seemingly be able to go. Do you ought to call from your automotive? This can be your secret. Too lazy to get away from bed? No problem. At the beach club? You’re probably pushing it, although judging by the demo video, that is not the only problem that should be solved. (The service is currently available in Basic, Standard and Professional versions, with prices starting from $300 to $1,150 per yr.)
The technology, backed by Los Angeles-based Krew Capital, currently only works with macOS, Pickle says, but a Windows version is anticipated next month. As for the conferencing apps that customers can pick from, they include Zoom, Google Meet and Teams, in keeping with Pickle. However, you should have to attend to make use of them. According to the website, “due to high demand, clone generation is currently delayed.”
Technology
‘Wolves’ sequel canceled because director ‘no longer trusted’ Apple
It could also be hard to recollect, but George Clooney and Brad Pitt starred together within the movie “Wolves,” which Apple released just two months ago.
On Friday, the film’s author and director Jon Watts said Friday that the sequel is not any longer happening; IN one other interview for Deadlinehe explained that he “no longer trusts (Apple) as a creative partner.”
According to reports, the corporate limiting your film strategy. For example, “Wolfs” was imagined to have a giant theatrical release, but as an alternative it played in a limited variety of theaters for just per week before it landed on Apple TV+.
Watts, who also created the brand new Star Wars series “Skeleton Crew,” said Apple’s change “came as a complete surprise and was made without any explanation or discussion.”
“I was completely shocked and asked them not to tell me I was writing a sequel,” Watts said. “They ignored my request and announced it in their press release anyway, apparently to put a positive spin on their streaming axis.”
As a result, Watts said he “quietly refunded the money they gave me to continue” and canceled the project.
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