Trump Media shareholder Justin Peedin said he will stand with Trump despite the former president’s historic beliefs.
Courtesy of Justin Peedin
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Courtesy of Justin Peedin
As a New York jury convicted former President Trump, supporters of Justin Peedin in Florida were outraged.
So he decided to take a stand: By buying more shares in Trump’s social media ventures — while encouraging others to do the same.
“It’s almost time to show you what DJTArmy is all about!!!! Buy another one today and hollllllld,” wrote Peedin on Truth Social a little before trading started there.
Peedin is part of a legion of Trump supporters who own a stake in Trump Media & Technology Group — the company behind Truth Social.
Many supporters have invested despite all the warnings from professional investors about companies that lose money and are not profitable.
And now, when many investors would normally flee because of the former president’s convictions, Trump Media shareholders vow to be furious over the convictions they see as a miscarriage of justice.
At least as of Friday, the push to pump up stocks isn’t over. After initially opening up about 15%, the stock ended the day down 5%.
But far from being discouraged, Trump Media shareholders vowed to stay put.
It’s the latest twist on Trump Media’s stock since it made its stock market debut in March by merging with a listed shell company.
For those who invested early, it has been a really lucrative ride away. But no one benefited more than former President Trump.
And now, whether these shareholders decide to hang on will determine the fortunes of a company that many on Wall Street have been fooling around with.
Lots of money in stocks
Trump has a lot riding on Trump Media. He owns nearly two-thirds of the company.
Despite taking a hit on Friday, Trump’s stock is still worth $5.6 billion — a fortune that earlier this year put him on the Bloomberg Billionaires Index for the first time.
That’s an incredible value for a company that lost more than $300 million in the first quarter and made barely any profit. It also had just 700,000 monthly active users in April, compared to more than 76 million for X, according to data from Similarweb.
Trump’s new fortune is all thanks to hundreds of thousands of investors who have bought into Trump Media, many of them to show their support for former President Trump.
Donald Trump attends a criminal trial at Manhattan Criminal Court in New York City on May 29, 2024.
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Justin Peedin is one of them
Peedin became a Trump supporter in 2015. He teaches English in an Arab village in Israel. He had left a sales gig at a call center in Maryland. He said he left partly to escape racial strife in the US and partly to reconnect with his Jewish heritage.
“I think if I can help make peace there, you can make peace anywhere,” he said.
Peedin voted for Trump twice and he believes the world needs Trump now more than ever. That is why he also decided to invest in Trump Media.
“Unfortunately, the world is not just hugs and kisses everywhere. There are people who want to do harm. And we need strong leadership,” he said. “I’m afraid of the future. So, 2024 is a big year. And that’s why I’m invested in this, you know?”
Social Truth Appeal
Peedin is a fan of Truth Social. It’s a platform where he and others find relief from what they see as censorship on rivals such as X and Facebook.
And Peedin believes that when the former president returns to the White House in November, Truth Social will be an outstanding company.
“I feel like I can win again. And if I only use this platform, I feel like the sky is the limit,” said Peedin. “And I also believe in, which is, like, very rare, to have an investment in something you believe in so much.”
Trump Media is losing money and has no revenue.
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Scott Olson/Getty Images North America
That trust has paid off handsomely so far — at least on paper.
Peedin got in early, investing more than $50,000. They pay around $35 on average. With Trump Media now trading at $49, Peedin is sitting on a paper gain of around $20,000 — a sizable return for a stock that media mogul Barry Diller recently called a “scam.”
Peedin said he bought some more shares on Friday, a day after Trump’s conviction.
If he lost everything, Peedin said he would still be able to put food on the table for his wife and young children.
“I don’t gamble with my child’s diaper money, you know?” said.
Wall Street was not impressed
Not everyone has cashed in on Trump Media.
The stock has been incredibly volatile on a daily basis. He is now slightly below a day before his debut, but they have sent good returns to those like Peedin who invested early.
Many professional investors have warned against stocks, which trade at higher valuations than their financial performance should dictate – despite the various risks faced by Truth Social.
The company is trying to expand into online video and says it will grow through mergers and acquisitions, both of which could turn out to be bad.
Above all, professional investors warn that the company’s fortunes are tied to former President Trump, who will be sentenced in July after being found guilty of 34 felony charges.
Trump also still faces several other state and federal criminal cases, and stock performance could be directly affected by his electoral fortunes in what is expected to be a heated presidential campaign.
Trump shares
There are even more risks involved. Trump could one day cash and bail from the company — which could hurt shareholders like Peedin.
Trump has not been able to sell his shares. Under the current agreement, they must continue until September, in the middle of the presidential campaign. But he could be given permission to sell sooner by the Trump Media board, which is full of friendly voices, like Donald Trump Jr.’s son.
But none of that risk bothered Peedin.
He still believes Truth Social is a startup with huge potential despite Trump’s conviction. He has unwavering faith in his former commander-in-chief — and he believes Trump won’t hurt supporters like him by draining money from the company.
“I think he really cares about the people who support him,” he said. “Because if you look at it, it’s like stabbing everybody in the back. And I don’t see them doing that.
