Irrational exuberance can lead to a self-fulfilling prophecy and market mania, where investors believe that a stock will never fall. However, gravity always takes hold eventually, leading to a potential sell-off triggered by unforeseen events. The loyalty of a strong investor base to a particular individual can drive surges in stock prices, creating a fragile and unsustainable situation. This irrational exuberance, fueled by personal loyalty and political circumstances, can tie a company's financial health to the political fortunes of an individual, as seen in the case of the surge in stock prices coinciding with favorable political developments for Trump.
Over the past few years, Donald Trump’s social media platform, Truth Social, has been dismissed as a money-losing boondoggle.
This week, that all changed. Matthew Goldstein, a New York Times business reporter, explains how its parent venture, Truth Media, became a publicly traded company worth billions of dollars.
Guest: Matthew Goldstein, a New York Times business reporter.
Background reading:
For more information on today’s episode, visit nytimes.com/thedaily. Transcripts of each episode will be made available by the next workday.