MSFT - LinkedIn Co-Founder Criticizes Trump Media's $6B Valuation Compared to Meta - What's Going On? | Benzinga
Trump Media & Technology Group (NASDAQ:DJT), the owner of Truth Social, has seen its valuation soar to a surprising $6 billion, even after a recent decline in its share price.
This figure has drawn incredulity from industry experts, given the company’s modest revenue and user base compared to major social media platforms.
Microsoft Corp’s (NASDAQ:MSFT) LinkedIn co-founder and venture capitalist Reid Hoffman expressed his disbelief at the valuation, CNN reports.
In 2023, Trump Media generated only $4.1 million in revenue, resulting in a price-to-sales ratio of over 1,400.
In contrast, social media giant Meta Platforms Inc (NASDAQ:META) has a price-to-sales ratio of just nine. Hoffman suggested a more appropriate valuation for Trump Media would be around $40 million.