Anthropic launches research program to study AI's job impact after CEO predicts 50% of white-collar roles will vanish in 5 years. New data shows coding work already transforming as AI agents automate 79% of developer tasks.
Good Morning from San Francisco, Germany wants DeepSeek banned from app stores. The reason? Chinese data laws. Berlin's
Germany demands Apple and Google remove Chinese AI app DeepSeek from their stores, claiming it illegally ships user data to China. The move reflects growing global tensions over AI privacy and data sovereignty.
Trump Media announces a $400 million stock buyback despite posting $400 million in losses last year on just $3.6 million in revenue. The company sits on $3 billion in cash, raising questions about whether returning money to shareholders makes sense.
💡 TL;DR - The 30 Seconds Version
💰 Trump Media announces $400 million stock buyback despite losing $400.9 million last year on just $3.6 million in revenue.
📊 Company sits on $3 billion cash from recent investor funding, making it one of the most cash-rich money-losing companies.
🏭 Buyback runs separately from their $2.3 billion Bitcoin strategy launched last month with institutional investors.
📈 Stock jumped 3% on the news as investors see buybacks as management confidence signal.
🎯 Company will retire all repurchased shares permanently, reducing total shares outstanding to boost per-share metrics.
🚀 Move suggests Trump Media views returning cash to shareholders as better use than investing in growth.
Trump Media announced a $400 million stock buyback program Monday, betting on itself despite posting a $400.9 million loss last year on just $3.6 million in revenue. The company's stock jumped 3% on the news.
The move comes as Trump Media sits on roughly $3 billion in cash, giving it unusual flexibility for a social media company that operates Truth Social, streaming platform Truth+, and fintech brand Truth.Fi. CEO Devin Nunes called the buyback "a vote of confidence in our company, our stock, and our strategic plans."
The timing raises eyebrows. Most companies announce buybacks when they're flush with profits, not nursing losses that dwarf their revenue by more than 100 to 1. But Trump Media's cash position changes the math entirely.
The buyback sits alongside Trump Media's separate $2.3 billion Bitcoin strategy. The company raised $2.5 billion from institutional investors last month in one of the largest corporate Bitcoin plays to date. That funding included $1.5 billion in equity and $1 billion in convertible notes.
Nunes positioned the Bitcoin move as protection against "discrimination by financial institutions" toward conservative businesses. The company plans to launch Trump-branded exchange-traded funds and crypto products later this year, pending regulatory approval.
The buyback program runs independently from the Bitcoin strategy. This dual approach suggests Trump Media views both moves as complementary ways to use its cash pile.
Trump Media will buy back shares through open market transactions and retire them permanently. This reduces the total number of shares outstanding, potentially boosting earnings per share even if profits stay flat.
The company also reserved the right to repurchase its outstanding convertible notes through open market or private deals. This gives management broad discretion over timing and pricing.
The board authorized up to $400 million in repurchases, but the company can buy back less if it chooses. All timing decisions rest with management, following SEC rules and regulations.
The numbers tell a stark story. Trump Media reported $400.9 million in losses against $3.6 million in revenue for the full year. That's a loss of roughly $111 for every dollar of revenue generated.
Despite this, the company maintains a $3 billion balance sheet thanks to its recent fundraising success. This cash cushion gives Trump Media options most money-losing companies lack.
The question becomes whether buying back shares makes sense when the underlying business burns through cash. Traditional financial theory suggests companies should invest in growth when they have excess capital, not return it to shareholders.
Investors initially pushed Trump Media stock up 6% in premarket trading before gains settled around 3%. The market seems to view the buyback as a positive signal about management's confidence.
Stock buybacks typically indicate management believes shares trade below fair value. By retiring shares, companies can boost key metrics like earnings per share without improving actual business performance.
Trump Media trades under ticker DJT on both Nasdaq and NYSE Texas. The company's market value fluctuates based on both traditional business metrics and political sentiment around the Trump brand.
The buyback raises questions about Trump Media's long-term strategy. With massive losses and minimal revenue, the company faces pressure to prove its business model works.
Returning $400 million to shareholders through buybacks could signal confidence. Or it could suggest management lacks better investment opportunities for the cash.
The company mentioned exploring "further strategic opportunities" but provided no specifics. This leaves investors guessing about Trump Media's growth plans beyond Bitcoin and share repurchases.
Trump Media's option to repurchase convertible notes adds another layer to the story. Convertible notes can dilute existing shareholders when converted to stock, so buying them back protects current owners.
The company retained "broad discretion" over terms and pricing for any note repurchases. This flexibility lets management act opportunistically if notes trade at attractive prices.
Reducing convertible debt also simplifies the capital structure, potentially making the stock more appealing to traditional investors who prefer straightforward equity stakes.
Why this matters:
Q: How did Trump Media get $3 billion in cash if it only makes $3.6 million in revenue?
A: The company raised $2.5 billion from institutional investors last month, including $1.5 billion in equity and $1 billion in convertible notes. This was separate from their existing cash reserves, giving them the unusual position of having massive cash despite tiny revenue.
Q: What are convertible notes and why would Trump Media want to buy them back?
A: Convertible notes are debt that can turn into stock shares later. When converted, they create new shares that dilute existing shareholders. By buying back these notes, Trump Media protects current shareholders from dilution and simplifies its capital structure.
Q: How much of Trump Media's cash reserves does the $400 million buyback represent?
A: The buyback represents roughly 13.3% of Trump Media's $3 billion cash position. This leaves the company with substantial reserves for other investments, including their separate $2.3 billion Bitcoin strategy and potential acquisitions or business expansion.
Q: When will the stock buyback actually happen?
A: Trump Media has complete discretion over timing and amount. The board authorized up to $400 million, but the company can buy back less if it chooses. All purchases must follow SEC rules and will happen through open market transactions.
Q: What products does Trump Media actually sell to generate revenue?
A: Trump Media operates Truth Social (social media platform), Truth+ (streaming service with live TV and on-demand content), and Truth.Fi (fintech platform). The company also plans to launch Trump-branded exchange-traded funds and crypto products later this year, pending regulatory approval.
Germany demands Apple and Google remove Chinese AI app DeepSeek from their stores, claiming it illegally ships user data to China. The move reflects growing global tensions over AI privacy and data sovereignty.
Amazon, Google, Microsoft and Meta are pushing Congress to ban states from regulating AI for 10 years. California just released a detailed framework for AI oversight. The clash could determine who controls AI rules nationwide.
Trump and Musk's $250 million political alliance collapsed in three hours Thursday, wiping $150 billion from Tesla's value as they traded accusations on social media. Their fight threatens America's space program and shows how personal feuds now shape policy.
Anthropic built secret AI models for U.S. spy agencies that handle classified data without refusing requests. The models already run at top security levels, creating the first AI designed for government secrets rather than consumer use.
Get tomorrow's intel today. Join the clever kids' club. Free forever.
