Former President Donald Trump’s earlier biographer raised concerns on Saturday about the potential financial impact if Trump loses the upcoming election. Tim O’Brien, author of TrumpNation: The Art of Being The Donald, shared insights during an interview with MSNBC’s Alex Witt about the current struggles of Trump’s social media platform, Truth Social, and how an election defeat could exacerbate these challenges.
When Trump Media & Technology Group (TMTG), the parent company of Truth Social, went public in March, its stock price reached $66.22. Fast forward to Friday, and it has plummeted to $22.81. The company reported over $16 million in losses last quarter, with revenue barely exceeding $1 million.
According to a report filed with the SEC, TMTG’s “success depends in part on the popularity of our brand and President Donald J. Trump’s reputation,” suggesting that a decline in Trump’s appeal could significantly affect the company’s value. O’Brien estimates that Trump’s stake in TMTG constitutes roughly half of his current net worth, valued at about $2.7 billion.
“Truth Social’s performance is directly tied to Trump’s political standing,” O’Brien stated. “It’s like a barometer for his fortunes, reflecting his social media influence and celebrity,” he elaborated.
O’Brien discussed how various political events have influenced TMTG’s trajectory. For instance, the stock saw a boost after an assassination attempt against Trump at a rally in July, as well as following a noteworthy debate performance against President Joe Biden.
However, O’Brien noted a shift in momentum since the Republican National Convention, with the Democrats gaining ground. The landscape was further altered when Biden exited the race and endorsed Vice President Kamala Harris, who has been actively fundraising and establishing a significant social media presence.
With regard to the future of TMTG, O’Brien indicated that a loss for Trump would likely lead to a drastic drop in the company’s value. “While it might not hit rock bottom, it will see a severe decline,” he warned, adding that a victory for Trump could restore that value.
When asked about Trump’s recent return to X (formerly Twitter) and its effect on Truth Social, O’Brien conceded that it likely diminished the platform’s financial potential. “He recognized the need to connect with a broader political audience,” he explained.