Donald Trump’s social media site "Truth" has no business being a publicly traded company, experts say.
The Trump Media & Technology Group (TMTG) posted its first quarterly revenues since going public in March. TMTG is the parent company of Truth Social, the social media that Republican candidate Donald Trump uses as a personal political platform.
TMTG posted unbearable losses, closing $327.6 million in red for the January-March period. Revenues were virtually insignificant at just $770,500 for the quarter. This is fewer revenues than TMTG reported for the same period in 2023.
Despite the catastrophic result, TMTG CEO David Nunes expressed optimism for the company’s future. Nunes said the company is looking at future partnerships and mergers with other telecommunication and technology firms.
In particular, Nunes announced the upcoming foundation of a streaming service, which would be released in three subsequent phases. In the first phase, the streaming platform will be launched for Android, iOS, and web browsers. Then, a second phase would see the creation of an App for Google and Apple stores. Finally, the last phase would be a launch on linear TV.
However, it’s not clear how TMTG will be able to finance such a costly expansion. Moreover, the streaming market is highly saturated, with even big players barely managing to turn a profit.
TMTG’s stock saga
Following the quarterly report, the newborn TMTG stock dropped almost 5%, with a 1.18% jump expected for after-hours.
Experts compared TMTG to a meme stock, whose value does not reflect the actual performances of the company and is highly volatile.
TMTG is inextricably linked to Donald Trump, one of America’s most divisive figures. Donald Trump founded Truth Social in 2021 after Twitter (now X), Facebook, Instagram, and other social media banned his account.
Trump’s account was flagged after his reported endorsement of the January 6th assault on the US Capitol, when Trump supporters entered the building rejecting the elections’ result.
Last year, tech entrepreneur Elon Musk acquired Twitter and reinstated Trump’s account. However, the now Republican candidate for the 2024 elections stuck to Truth Social and stopped operating on traditional social networks.
In April 2024, TMTG closed a merger with Digital World Acquisition Corp. The deal has been in the works since 2021, but it never came to fruition until now.
The day it became public, Trump’s stock was trading at $46.30 with an 8.14% intraday jump. Since then, the stock fluctuated up and down with extremely high volatility. Donald Trump’s net worth gained and lost billions of dollars in a matter of hours.
Now, TMTG’s stock is traded at $48.38, though experts don’t believe it can hold for much longer.
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