Truth Social, Donald Trump’s new social media platform, is facing a rough patch with its stock plunging to its lowest level in months.
Launched in February 2022, Truth Social came into play after Trump was banned from platforms like X and Facebook. Despite being reinstated on those platforms, Trump opted to venture into his own app. While platforms like Reddit or X boast more users, Truth Social is the new kid on the block.
After Digital World Acquisition Corp. merged with Trump Media & Technology Group (TMTG), Truth Social’s parent company earlier this year, paving the way for its public listing, the stock has been on a rollercoaster ride and is now at its lowest point in months.
Google Finance data shows the “DJT” share price hitting $39.31 as of June 11, a notable drop from previous highs. Even though the current price is above the lowest point back in April, it’s still a significant decline.
Recent financial reports reflect a troubled path for the company, with TMTG announcing a significant quarterly net loss. Truth Social’s revenue and operating losses paint a daunting picture, raising concerns about the stock’s future value.
Given the company’s challenges and the lack of profitability, questions arise about the stock’s real worth. With fewer active users compared to major platforms, should Truth Social be valued lower than its current share price?
Perhaps it’s time to ponder not if the stock deserves to fall below zero but rather if it should hold its ground above $40 per share.