Summary:
Donald Trump's startup, Truth Social, is facing a 41% decline in shares over a month.
Shares of Trump Media have dropped over 25% in five days, reaching lows under $12.
Truth Social has only about five million active users, significantly lower than competitors.
The company reported only $4.1 million in revenue while losing $58 million last year.
Experts claim the company is overvalued by 1,000%, with insiders cashing out amidst the decline.
Former president Donald Trump is determined to "Make America Great Again", but his failing startup, Truth Social, tells a different story. Shares of Trump Media & Technology Group, the parent company of Truth Social, have seen a staggering 41% decline in just a month.
The Decline of Trump Media
This is the same figure who promised to "fix" Obamacare and build a wall paid for by Mexico—neither of which materialized. Now, as he makes bold claims about saving America from an imaginary crime wave, it's worth noting that Truth Social is struggling to keep its head above water.
In the last five days alone, shares have dropped over 25%, reaching historic lows at under $12 per share. This is a stark contrast to the high points seen after the company announced its plans to go public with Digital World Acquisition Corp.
Financial Woes
The scale of the financial collapse is shocking. Truth Social has lost nearly all gains since its merger just a few months ago. Trump's personal stake in the company, which accounts for nearly 57% of outstanding shares, now stands at around $1.4 billion, a far cry from its peak.
Recent estimates show that the platform has about five million active monthly users, a number that pales in comparison to competitors like Elon Musk's X. Despite attempts to appear robust, including plans for a streaming service, the financial reality is grim: the company reported a mere $4.1 million in revenue last year while losing $58 million.
Expert Insights
University of Florida finance professor Jay Ritter stated that the company is still overvalued by 1,000%, suggesting a valuation barely above its cash reserves. With insiders cashing out, including key executives, the future looks bleak for Trump's get-rich-quick scheme.
Despite the grim outlook, the company insists it has a growth strategy in place, claiming optimism for recovery. However, many observers remain skeptical about its viability as a business.
More on TMTG: As Truth Social Collapse Continues, Finance Professor Says Its Stock Is Still 1,000 Percent Overvalued
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