The stock formerly known as DWAC is now up nearly 520% from its public offering as a SPAC (special purpose acquisition company).
If there is a stock more overhyped than AMC Entertainment (NYSE:AMC), my vote would be Trump Media & Technology Group (NASDAQ:DJT), the operators of a second-rate X, which itself has lost a lot of its shine since Elon Musk bought it.
Since its launch in early 2021, the company has generated just $5.8 million in revenue, losing $32 million through the middle of 2023. I’m sure it’s doubled since then.
“Given the fact that their sales last year were less than $5 million, and they’re losing significant money, it is hard to believe that the long-term economic value of this company could even be as high as $100 million,” CBS reported comments from Harry Kraemer, a professor specializing in mergers and acquisitions at Northwestern University’s Kellogg School of Management. “So talking about billions is absolutely ridiculous from an economic standpoint.”
Darn straight. Don’t waste your money on this speculative stock. Look at these three $50 to $60 stocks to buy over DWAC.
Walmart (WMT)
Walmart (NYSE:WMT) stock closed the final day of March at $60.17, $1.79 below DJT. Of course, its market capitalization is $485 billion, significantly higher than Trump Media’s purely speculative valuation of $8.4 billion.
Another striking difference between the two companies is that Walmart has directors who understand its business, unlike Trump Media’s roster of Trump allies, Robert Lighthizer and Kash Patel. Among the seven directors, only Eric Swider has any tech experience while none of the seven, as far as I know, have ever worked in media.
Of course, Walmart could buy Trump Media with its 2023 free cash flow of $12.2 billion.
In Nov. 2023, I recommended Walmart stock because of its use of AI to automate its supply chain and provide same-day delivery across the U.S. Given its size and scale; it will generate outsized profits in the future.
Trump Media could only hope to generate this kind of revenue generation.
Monster Beverage (MNST)
Monster Beverage (NASDAQ:MNST) stock closed the final day of March at $59.28, $2.68 below DJT. Its market capitalization is $62 billion, significantly higher than that of Trump Media.
One thing Trump Media stock will never be able to do is match the energy drink maker’s long-term performance. Over the past 30 years, no U.S.-listed stock has performed better. Between Feb. 14, 1994, and Feb. 14, 2024, it has appreciated by 200,000%, turning $1,000 into $2 million, a compound annual growth rate of nearly 29%.
“Some of it is clearly right place, right time,” Stifel consumer and retail managing director Mark Astrachan told CNBC. “I think there’s an element to it as well of being really good at what you can do, because you can’t be as lucky as they’ve been for as long as they’ve been, without being really good at running a business.”
Delivering these kinds of returns over such a lengthy time frame is a tribute to a strong management team and founders, which Trump Media lacks.
Carrier Global (CARR)
Carrier Global (NYSE:CARR) stock closed the final day of March at $58.13, $3.83 below DJT. Its market cap is $52 billion, significantly higher than that of Trump Media.
Carrier will gladly sell you one of their HVAC units if you live in a warm climate, which is most of the world due to global warming.
Carrier recently was ranked 37th on Fortune’s list of America’s Innovative Companies.
“Through rigorous innovation, Carrier is advancing its portfolio of solutions focused on efficiency and electrification, in support of the shift from fossil fuel to electric heating. Carrier has more than 6,000 engineers around the world focused every day on providing its customers with innovative and differentiated sustainable solutions,” Carrier’s March 26 press release stated.
On March 5, the company announced the sale of its Industrial Fire Business to Sentinel Capital Partners for $1.43 billion. It is selling the business to focus on its higher margin, growth climate, and energy solutions.
The net proceeds will pay down debt. Once it gets back to 2x leverage in 2024, it will resume share repurchases.
Names like Carrier are iconic businesses worth owning for the long haul.
On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
