Truth Social: Donald Trump’s social network in a slump

With Truth Social, Donald Trump wanted to set up a social network that was well-disposed towards him. However, the alternative to X is not doing well, as can be seen from the massive drop in sales, among other things.

Furious stock market launch of Truth Social

It became known back in the summer of 2022 that Truth Social was in trouble. At the time, it was leaked that the company had even built up debts with its host. Almost two years later, the social network, which was launched as an alternative to Twitter, still exists. And not only that. Truth Social is doing better than ever before.

As a result, Trump Media & Technology Group Corp., the company behind the social network, was able to make a truly furious start on the stock market. Anyone wanting to buy a share in the company had to pay a hefty USD 80 on the trading floor. This is emblematic of the high company value that Trump was able to demonstrate here. Trump Media is now worth over 10 billion US dollars.

More appearance than reality?

However, there are some question marks over the value. After all, it is somewhat incomprehensible that Trump Media should be worth so much. After all, the social network Truth Social has hardly any presentable successes to show. Quite the opposite. Neither turnover nor profit figures can explain this positive development.

Rather, it is likely to be a symbol of the extensive financial support of the former US president. Many are using the company as a roundabout way of injecting Trump with a bulging cash injection. He owns no less than 60% of the media company. So we can speak here of extensive indirect support.

However, the high rise was followed by a deep fall. Trump Media and Truth Social had to endure heavy losses just one week after going public. The value of one share fell by a whopping 20%. This was probably due to the company’s miserable business figures for 2023. After these were published, the share obviously lost attractiveness and value.

This is not surprising. After all, Truth Social posted losses of 58.2 million US dollars in turnover. This is all the more serious when you consider that the last figures showed a turnover of just under 62.2 million US dollars. This is probably emblematic of the shaky future of the controversial social network.