Trump's New Public Company 🔉

💼 The former President’s media company is officially public. March 27, 2024 | Peel #676 Silver Banana goes to... [Zette. ]( In this issue of the Peel: - 🤔 Want to guess which sector retail traders are dumping their savings in? - 🚦 Tesla’s offering a free one-month trial on their FSD software… - 💼 The former President’s media company is officially public. Market Snapshot 📸 Banana Bits 🍌 - A Baltimore bridge collapsed, throwing the U.S. logistics industry [into chaos]( - I didn’t think it was possible, but Starbucks might [get more expensive]( - Treasury yields are [still climbing](. Clearly, no one told them about JPow’s dovish outlook - New home sales fell and came in below expectations…killing our attempt at [housing market optimism]( This Harvard-Founded AI Startup Grew 5x in 2023 (And You Can Invest) Out of free articles? Enter Zette.ai, an AI news startup transforming how we access journalism. With just a click, Zette.ai lets you unlock articles that you find interesting—all while using AI recommendations to send the coolest content your way. They’ve raised a $1.7 million oversubscribed pre-seed, have 50,000+ readers with 5x year-over-year growth, and top partnerships with 110 leading publishers, from Forbes to Pulitzer-Prize winning news outlets. Don’t miss out: The Daily Peel readers can invest in Zette.ai’s early bird round! They’ve already raised half a million within 24 hours of launching their campaign—[invest starting at $250 in Zette](=) today before early bird terms sell out. Macro Monkey Says 🐒 This Is March Bad markets make strong traders. Strong traders make good markets. Good markets make weak traders. And weak traders make bad markets. That’s how the saying goes, right? Regardless, sentiment has soared for U.S. markets, the economy, and gambling in recent weeks, especially thanks to March Madness really heating up the degeneracy from sea to shining sea. At the same time, we’ve finally fallen out of winter and into spring. It’s a time of change here in the U.S., and as a result, we’re starting to wonder if sentiment will follow the seasons. After all, this is March. The Numbers The good vibes have been raging for quite some time. And, while few noticed the vibe shift from 2022’s clinical depression in equities to 2023’s push to climb the “wall of worry,” apes far and wide are starting to get on board with that narrative. [Source](=) But, retail traders are starting to pull back. As we can see in the above chart, the drawback of dumb money inflows into equities follows a trend seen in 2023 but hasn’t coincided with a market pullback as the others did... yet. Now, the question becomes—why? Without a simultaneous pullback, technicians could interpret this soaring sentiment as moving into the territory of a contrarian indicator. To be clear—most of the time, all-time highs lead to further all-time highs, and high sentiment leads to gains and then even higher sentiment. Until it doesn’t. [Source]() And right now, we’re seeing retail traders throw the mortgage at equities. As a percentage of income, equity inflows from retail traders are ripping right back to the previous bubble territory. While there is little other evidence of bubbly behavior in the U.S., this is the kind of thing that can’t help but make you think “are things too good?” And, according to further data from the least cool bulge bracket bank to work for, Deutsche Bank says that cyclicality and seasonality can mostly explain the strong inflows to equities—noting the lack of a spike in risk appetite. [Source]() However, Deutsche continued to say that we’re entering a seasonally weak period for equity inflows from now until late summer. If the inflows continue at such a high rate, that could imply risk appetite is entering full degenerate mode once again. Of those inflows, retail traders are primarily pouring into what’s often seen as the most degenerate sector of all, tech and telecoms. [Source](=) While it could be that the degeneracy of March Madness bursting back on the scene is getting the dumb money’s blood flowing, Nvidia’s net income is a damn good reason for those dumb retail traders like you and me to flow into those stocks. The Takeaway? However, maybe we dumb, stupid, pathetic, idiot retail traders might actually be onto something by continuing to dump this month’s rent check into stocks. Clearly, it’s working so far. It’s either that, or we’re going to prove why we’re called “dumb money” and watch equities enter correction territory… at the very least. In fact, a correction—a.k.a. >10% pullback—might actually be a good thing for markets as we can then say, “See, we fell 10% and ripped right back, clearly the party is still on.” We don’t want to overthink things, but thinking isn’t really our specialty either. And while I’m not scared enough to have my parents come pick me up yet, I’m glad I have them on speed dial. What's Ripe 🤩 Krispy Kreme (DNUT) 📈39.4% - Two pillars of the legendary diet of the average American are coming together, and the only thing soon to be higher than this stock is heart disease. - Krispy Kreme’s donuts are getting added to the menu of the U.S.’s largest drug dealer, McDonald's, bringing huge new business to the donut shot. - McDanks shares were up too. Plus, they’re creating future customers for healthcare companies purely out of the kindness of their own hearts… and failure of their customers’. Tesla (TSLA) 📈2.9% - Nobody’s had this much confidence in a product since my grandma forced us all to try her almond puff for dessert on Christmas. This one’s wild. - Tesla’s much-hyped autonomous driving software, FSD, will be available to ALL Tesla owners in the U.S., completely free, for one month starting this week. - Clearly, Tesla is confident Full-Self Driving is as “mind-blowing” as Musk called it. Plus, he’s forcing all new Tesla buyers to try it on delivery. - This is huge for so many reasons, most of all the additional driving data they’ll get as FSD’s take rate has been low. Check out all our [Tesla thoughts here](=). What's Rotten 🤮 United Parcel Service (UPS) 📉8.2% - UPS can barely deliver packages on time, so it’s no surprise that they couldn’t deliver a good day for shareholders. Profitability challenges loom. - At their investor day, UPS raised their revenue targets for 2026, for some reason, while saying they expect a 40% YoY reduction in profit this quarter. - Hard to get excited about that. CEO Carol Tomé did say this quarter will be the worst of it, but it seems like investors ain’t buying it. Canada Goose (GOOS) 📉6.8% - Canadian geese are heading back up north, but unfortunately, shares are moving in the wrong direction. Laying off 17% of your workforce will do that. - The layoffs come as the luxury jacket maker that warms at least half the student body at every business school in America realized it has over hired. - Overhiring was essential to support the strong consumer spending from 2021—early 2023. But, expecting further pullbacks, some had to go. = Thought Banana 🤔 Stock Spotlight: Trump Media & Technology Group Corp. 887 days later, this deal is finally going through. Former President big dawg Donald Trump has had perhaps the most volatile should-be-retirement of all time over the past 9 years. From the best tweeter on the planet to one of the worst hair pieces out there, one thing is clear: the guy’s got stones. And right at the buzzer—just as Trump was ordered to pay close to half a billion dollars to settle legal cases, now reduced to $175mn—it looks like the Donald won’t have to break the bank. The former President’s media company is officially public. What Happened? = [Source](=) Digital World Acquisition Corp, a SPAC that announced its combination with Trump Media and Technology Group (TMTG) on October 21, 2021, has finally completed the merger. Now, DWAC is DJT. Now, everyone who bought shares in the hype of 2021 is finally moving towards breaking even. Anyway, Donnie T is fired up as this guy owns effectively ~58% of the firm. As of yesterday’s peak value, that was an ownership stake of $4.87bn. If you think Trump’s tweets were volatile, just wait until you see the stock price. This thing has been as high as Snoop Dogg and as low as my IQ (and trust me, that’s pretty low). Looking back at the firm’s 2021 pitch deck, we can see that TMTG has some big ambitions. = The venture is meant to be an alternative Big Tech platform, looking to effectively combine aspects of companies from Meta to Disney+. On the same day the creation of TMTG was announced, Trump even went as far as to say that the firm’s goal was to “challenge the dominance of the Big Tech giants and Big Media bosses.” To lead this endeavor, former Congressman Devin Nunes will serve as CEO. I’m not sure if Congress is an ideal background, but the guy did start a cattle business at age 14, so… he’s at least entrepreneurial. What’s Next? Without getting political, this is a—and let me choose my words carefully—unique public listing. It’s not the first time that Donald has taken a company public, and not even the first time he’s used the ticker “DJT.” Back in 1995, Trump Hotels and Casino Resorts went public at $14/sh… by 2004, it was worth $0.50/sh, went bankrupt, and delisted. Financials on this thing are hard to come by, given it did not have to file an S1 because TMTG went public as a SPAC. I’m sure I don’t need to say it, but this is absolutely one that we’ll all have to stay tuned in on. I speak for myself… every Fox News Dad out there, as comedian Shane Gillis would put it, when I say this is gonna be… interesting. 💭 The Big Question 💭: What kind of financial profile does TMTG carry? Will the firm be successful in its goals of challenging Big Tech? Is this the wildest thing a former President has ever done? Banana Brain Teaser 💡 Previous 🗓 From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4. From 2003 to 2006, the number of employees at this company decreased by a factor of 1/3. If there were 100 employees at 2006, how many employees were there at the company in 2000? Answer: 120 Today 🕐 A collection of 16 coins, each with a face value of either 10 cents or 25 cents, has a total face value of $2.35. How many of the coins have a face value of 25 cents? Send your guesses to vyomesh@wallstreetoasis.com Wise Investor Says 🤓 “Sometimes your best investments are the ones you don’t make.” — Donald Trump How Would You Rate Today's Peel? 😁[All the bananas]() 😐[Meh](=) 😩[Rotten AF]() Happy Investing, David, Vyom, Jasper & Patrick [ADVERTISE]() // [WSO ALPHA]( // [ACADEMY]( // [COURSES]( // [LEGAL]( [Unsubscribe]( IB Oasis Corp. (aka "Wall Street Oasis") 20705 Saint Charles St Saratoga, California 95070 United States (617) 337-3353