FB Reinstates Trump, But Nobody Gives a Zuck

If Trump didn’t return to Twitter, he won’t return to Facebook. [The Rude Awakening] January 27, 2023 [WEBSITE]( | [UNSUBSCRIBE]( FB Reinstates Trump, But Nobody Gives a Zuck - After a two-year ban, Donald Trump is allowed back on Facebook. - Trump has too much riding financially on his TruthSocial to post on FB. - FB is frantically trying to get back into the news cycle after Elon’s Twitter surge. [Warning: Will “Bidenflation” Destroy Your Retirement?]( [Click here to learn more]( If you’re like most Americans, you’ve worked hard for decades to build your financial legacy. And now, as a result of Biden’s disastrous money printing policies, that’s all at risk. According to one top retirement expert, “Bidenflation” threatens to destroy your retirement and make your hard-earned savings worthless. That’s why you must take action right away to protect yourself… [Click here now to get the simple, step-by-step actions to survive “Bidenflation.”]( [Click Here To Learn More]( [Sean Ring] SEAN RING Happy Friday! We’ve made it, thank God! After peppering you with charts yesterday, I thought I’d keep today’s Rude to a friendly rant. Ok, maybe one chart. We’ll see. I don’t know about you, but when I read about FB reinstating Trump, I couldn’t think of a more anti-climactic headline in history. It’s one of those “Mrs. Lincoln, did you enjoy tonight’s show?” moments. Like, who cares? To me, there’s also a truckload of cynicism going on here. Why now? Probably because Facebook has been out of the news cycle for so long. Is this really the best thing they could think of? Because I’ll tell you what, no one cares about the metaverse anymore. ChatGPT and Open AI have made the real world a much more attractive place. And Elon had already stolen Zuck’s thunder last November by reinstating The Donald first. So to me, this is one big dog-and-pony show. Let’s get into it. META Stock Needs Meds Damn. Ok, here’s one chart. It’s the chart of Facebook - now META. [SJN] After reaching a market cap of over $1 trillion in September 2021, Facebook stock fell off a cliff. And once it changed its ticker from FB to META in June 2022, the stock kept falling. That’s not all that surprising, actually. From [Barron’s]( (bolds mine): While the ticker change won’t mean much for people currently holding the stock—who will automatically see the update on their trading platforms—history suggests that changing a ticker could create confusion in the immediate aftermath. In a 2006 study of 171 ticker changes, researchers found that there was a “significant reduction in trading volume” and a decline in stock prices on the day a pure ticker change went into effect, as well as on the following day. The drops weren’t reversed in the subsequent five days, with some persisting over a decade, the University of Texas at San Antonio researchers found. They attributed the decline to investors being ill-informed about the change. Although information is more readily available to investors now, a ticker change can still alter trading volumes. For example, among seven companies that changed their tickers in 2022, five saw trading volumes were below their 30-day average on the day of the change, according to Dow Jones Market Data. This includes well-known names such as Paramount Global (PARAA) and Shell PLC (SHEL). Of course, it wasn’t just the name change. It’s what my good friend, Best Man, and Rude reader Singapore Guy would call “style drift.” Usually a term reserved for hedge fund managers who run out of ideas, style drift is the divergence of a fund from its investment style or objective. That is, fund managers start trading strategies they have no clue about. As the former head of alternative investments for a big German bank, Guy always said as soon as a hedgie’s style started to drift, it was an immediate sell signal. Zuckerberg went from social media to metaverse. The smart money got out in a hurry. Luckily, META has enjoyed the bounce since November. The stock is up nearly 67% since then. The Lies Come From All Corners Former Deputy Prime Minister of the United Kingdom and current President of Global Affairs for Meta Nick Clegg said of reinstating Trump: We've always believed that Americans should be able to hear from the people who want to lead the country. We don't want to stand in the way of that. Once a politician, always a politician. Obviously, that entire passage is a lie. As someone who lived in the UK for nearly ten years, I can safely tell you that Clegg is about as useful as a chocolate chastity belt. Cue the screeching from the left. Adam “Piece of” Schiff tweeted: [SJN] Credit: [@RepAdamSchiff]( That, too, is a lie. It’s not an insurrection if you’re walking between velvet ropes. Sorry, not sorry. But the best one is this one: [SJN] Credit: [ZeroHedge]( Well, the part about FB losing billions of dollars because of him. Doubtful. However, I love how he sticks his boot in Zuck’s face. It’s a beautiful thing. But Trump’s not really returning, just like he didn’t return to Twitter. Here’s why. [Baltimore Businessman: “I didn’t have a choice.”]( I didn’t have a choice. I had to record this 1-minute clip from the privacy of my home… …and get this urgent message to you – immediately. What’s going on? [There’s a breaking development to our publishing business…]( And according to our records… You’re about to get left behind. My biggest fear? If I don’t bring you up to speed… …then we’ll be forced to move on… without YOU. And I’d hate for that to happen. [So go here now to see my urgent 1-minute clip…]( Before you’re left out for good. [Click Here To Learn More]( Trump and Truth Social Credit to the [BBChé]( for sorting this out. It’s all about the incentives: To understand the financial bind Donald Trump is in, you have to understand the complex nature of Truth Social's business setup. Last year, the private company that owns Truth Social, Trump Media & Technology Group (TMTG), announced its intention to merge with a shell company trading on the stock exchange called Digital World Acquisition Corp (DWAC). DWAC is what's known as a Special Purpose Acquisition Company (Spac). Spacs are hyped as a way to speed up the often slow process of taking a private company public. In simple terms, it means merging a company that isn't on a stock exchange with one that is. Both TMTG and DWAC have agreed to merge, though the deal has not yet been completed. But that hasn't stopped investors from piling money into DWAC - all of them speculating that the deal will go through. The shell company is currently valued at more than $800m (£665m). Considering DWAC would only be acquiring about a quarter of TMTG, Mr. Trump's newly merged company would be worth at least $3-4bn, says Michael Ohlrogge, an academic specializing in Spacs. "He would own the vast majority. He would own probably 70 or 80% of it." If it all goes through, it would make this business venture one of the most successful of Donald Trump's career. But the key to keeping stock value high is making sure that the former president stays on Truth Social - and exclusively so. With that in mind, and according to [ZeroHedge]( Trump’s deal requires him to "first channel any and all social media communications" to Truth for at least six hours before cross-posting to other platforms. The agreement expires in June, according to Rolling Stone, which notes that it would be right around when Republican primary season begins to heat up. Wrap Up Donald Trump won’t be on Facebook anytime soon. He’s got too much money tied up in TruthSocial even to risk it. ZuckerFace knows this but made a big brouhaha over reinstating Trump because Zuck is last decade’s news. I haven’t been on FB in ages, and Trump’s return wouldn’t make me go back there. But as the metaverse fails around Zuck, he has to do something. It’s a swing and a miss! Have a wonderful weekend. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. We welcome comments or suggestions at feedback@rudeawakening.info. 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