“I think most retail traders missed Trump's market, and I’m also a Trump supporter, so I’ve been anxiously waiting for this new social platform,” she said. “It’s been unreal, I don’t think anyone really expected it to go this high.”
Still, some traders believe there’s a long-term case for investing. Danny Naz, a 44-year old who lives in Brooklyn and has been day trading full-time since 2017, thinks that Trump’s social media ban and his potential presidential run in 2024 could keep the momentum going for the new company.
Trump, who has signaled he could run for president again in 2024 but hasn’t made a formal announcement, was blocked by major social-media firms for his role in encouraging supporters who broke into the U.S. Capitol on Jan. 6 as Congress was meeting to certify President Joe Biden’s victory in the 2020 election.
Those who do decide to buy and hold should be prepared for volatility, according to Sahm Adrangi, founder and chief investment officer at Kerrisdale Capital Management, given the fundamentals of the new social media company are uncertain.
“It's hard to build a critical mass of a user base, but Donald Trump launching it is probably like the number one way to potentially build a real critical mass,” he said. “Still, it's a bit of a long-shot.”
Many of the retail investors who reaped huge profits this week aren’t even thinking about Truth Social’s future. They’re celebrating their winnings — and dealing with any lingering emotions.
“Do I feel any guilt as a person?” said Kimotho, the Yale student. “Yes, but I look at my bank account and I feel very happy.”
This article was provided by Bloomberg News.