Since its debut, the stock value for Trump Media & Technology Group, the parent company of Truth Social, has seen extreme turbulence. From hitting an all-time high to crashing a few days later…
The question remains…
Will Truth Social’s stock value ever stabilize? And will they ever turn a profit?
Truth Social’s Initial Stock Value
Truth Social was created in 2022 after its founder, Former President Donald Trump…
Was banned from Facebook and the platform formerly known as Twitter.
The app aims to create a space where viewpoints held by Trump and his followers are not censored, in the ultimate expression of free speech. Like other conservative social media sites, the app struggles to compete with other social platforms…
And it shows in Truth Social’s stock value.
The app’s biggest issue is the same one X is facing currently…
NOT BEING ABLE TO FIND ADVERTISERS.
Due to their extremely lax content moderation policies, which have allowed for an increase in hate speech on the platform…
Advertisers are scared off by the app.
However, despite the difficulty…
When Truth Social went public, its stock value skyrocketed.
Stock Value Rising… And Falling
On March 26, 2024, TMTG went public…
And we saw the stock value for Truth Social explode.
By the end of its first day on the market, its stock surged 56%. Two days after its debut…
THE COMPANY’S MARKET CAPITALIZATION REACHED $9 BILLION.
The surge was caused by Trump’s followers and meme stock aficionados. Altogether, the boost raised the value of Trump’s stake in the company to $5 billion.
But still, the stock market is volatile…
And not even this stock is an exception.
A few days after this all-time high…
STOCK VALUE IN TRUTH SOCIAL DROPPED AN ALARMING 70%
The site’s value dropped even more when Truth Social announced a new streaming venture. Investors were turned off considering streaming is an expensive venture that is hard to turn a profit in.
Since the dramatic slide in stock value, Truth Social has somewhat stabilized.
Yet, many critics point out that one of the only reasons the company went public in the first place was to cover for Trump’s legal woes. The allegations are not completely out of left field…
Considering that, amid controversy, Trump did recently launch a $400 sneaker line.
The Future of Truth Social
Experts recently began telling investors to be wary of Truth Social stock considering how volatile its value can be.
However, we’ve yet to see if the app has any chance of turning a profit within its ventures.
Despite its struggles, Truth Social has got people’s attention…
Now we have to wait and see if it will go big or go home.
Be Great,
GCTV Staff
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