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TRUMP FAIL: TruthSocial financial performance TANKS stock price

TRUMP FAIL: TruthSocial financial performance TANKS stock price

TruthSocial, with limited appeal and reach outside Donald Trump’s shrinking fan base, may prove not to be such a hot investment.

Trump’s social media stock hit the market with a boom, unsurprisingly from a man whose followers line up to buy NFTs, shoes, Bibles, and even pieces of his worn suits, and hand their money over to him freely. Financial experts warned, though, that it wouldn’t last — and it’s already slipping.

The former president raised his own net worth by billions at launch, since he owns a majority share of the company, but it’s not money he can access, at least in theory. If he was to obtain a waiver from the board (consisting of people like Devin Nunes, Donald Trump Jr., and Kash Patel) he could pull his money out, which would likely tank the stock.

The more immediate problem is that investors are beginning to look at the company more closely, seeing its loss of more than $58 million last year, and its potentially dismal future. There’s already been a significant drop in its share price. Forbes reports:

“Trump Media’s stock (ticker $DJT for Trump’s initials) tanked 13% by late morning, trading at about $51 per share, a roughly 35% drop from its $79 peak set last Tuesday on its first day as an independently traded public company.”

That’s a loss of more than $2 billion for Trump. For his investors, the drop won’t be so high, but could still be enough to urge them to cut their losses, at least, if they’re in it for profit. Many, though, may be putting their trust not in the finances, but the former president. Barrons reported last week:

“Investors in ‘red states’ appear to be leading the charge. Public, an online brokerage with more than three million users, says demand for the stock has surged from customers in Idaho, Wyoming, South Dakota, Oklahoma, and Florida, where Trump and other Republicans tend to do well.”

However, experts are warning that TruthSocial is not a financial holding for long-term revenue, but a “meme stock,” with high risks and the potential for short-term gain, if, that is, the stockholder sells at exactly the right moment — a moment that may have already passed.

Here’s a look at the performance of the Trump Media & Technology Group Corp. stock from just today as of the time of the writing of this article:

 

By the time you read this it’s likely to be lower still.

Here’s the performance trend since the stock went public last week:

 

Again the price could have dropped even further since that report was posted.

Buyers beware. You’re not going to get rich investing in Trump and his TruthSocial platform.

Stephanie Bazzle
Steph Bazzle is a news writer who covers politics and theocracy, always aiming for a world free from extremism and authoritarianism. Follow Steph on Twitter @imjustasteph. Sign up for all of her stories to be delivered to your inbox here:

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