04-01-2024, 11:55 PM
Ted King wrote:
I think it is fair to compare the price to earnings ratio of DJT to other similar media companies:
Meta Platforms (Facebook+) PE ratio: 32.97
The PE ratio of Trump Media & Technology Groupis 0.00.
But maybe that's not so bad:
Price to earnings ratio for Twitter: -413
Twitter doesn't exist anymore.
X is privately held.
No P/E, but Musk says that he's breaking even.
Let's take a look at that...
X Corp is presently (generously) valued at about $19 Billion. It has an estimated $120 million in annual subscription revenue. Have to do a rough calculation here, but Twitter made $4.7 Billion in ad revenue in the last year before Musk's takeover and revenue is supposedly down by 67%, so guesstimate about $1.55 Billion per year in income from ads. Offset that by $1.5 billion in interest payments on Musk's $13 billion in bank loans... and looks like he's got about $170 million before operating expenses... which must be about $170 million if he's breaking even.
(That was fun!)
Way better than DJT.