In essence, the chart created by JPMorgan’s Michael Cembalest illustrates the staggeringly high value placed on each individual Truth Social user compared to other popular social media platforms. As of May 2022, Trump Media, the parent company of Truth Social, had a market value nearing $7 billion, despite reporting a loss of $58 million in 2023 on around $4 million in revenue. This makes it challenging to assess the company using traditional methods like price-to-earnings ratios since it hasn’t turned a profit yet. However, comparing the current market valuation to its monthly active user base provides insight into the issue. With roughly 5 million monthly active users, the stock market valued each user at $890 in late April. Since then, that figure has skyrocketed to $1,309, surpassing TikTok’s $588 per user, more than tripling Facebook’s ($META) $408 per user, and exceeding the values attributed to the monthly active users of Pinterest, Snapchat, and Reddit by more than tenfold. According to Interactive Brokers’ Steve Sosnick, the extraordinary valuation may stem from the intense loyalty that millions of Americans have for former President Donald Trump, whom he describes as a “call option on the MAGA movement.” As such, it’s not surprising that some supporters would invest in his new venture. The initial public offering (IPO) took place in March via a special purpose acquisition company (SPAC).
Based on the text material above, generate the response to the following quesion or instruction: How does the value assigned to each Truth Social user compare to that of other major social media platforms, according to the chart created by JPMorgan’s Michael Cembalest?
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