After launching his social media platform Truth Social in 2022 in response to his ban from Twitter (now X), Trump seemed determined to build his digital empire. However, his recent return to X for an interview with Elon Musk raises serious questions about the future of Truth Social and whether Trump is abandoning his platform in favor of a bigger megaphone.
Don’t miss:
After nearly a year of inactivity on the platform, Trump returned in full force on Monday, flooding the site with a wave of new posts. He followed that up with a two-hour, glitch-ridden conversation with Musk. The conversation became rambling and repetitive, leaving the audience bewildered and asking, “What did we just listen to?”
The move shouldn’t come as a surprise to those invested in Trump Media & Technology Group, the company behind Truth Social. The company’s financial reports have warned of potential risks for some time, particularly since a rule allows Trump to share his political messages on any social media platform he wants. This means Trump can freely use a larger platform like X without worrying about how it affects his own company or his investors.
Trending: This startup’s stem cell research aims to reduce reliance on animal testing — Expects 55% YTD revenue growth and costs just $3 per share for early investors.
The fallout was severe. After Trump returned to X and a disappointing interview with Musk, Truth Social, Trump Media & Technology (NASDAQ:DJT) stock took a beating, falling to nearly four-month lows. Trump Media has lost billions in value since its launch, with the stock price plunging from a record high of $97.54 to just $23.97 at the time of writing. The company’s financials look bleak, with nearly $16 million in reported losses for 2023 and high interest charges.
Despite these troubling numbers, Trump Media CEO and former House Speaker Devin Nunes insists the company is still “well positioned” because it has no debt and a platform that millions of people use. “Why are we well positioned? Because we have no debt,” Nunes told Fox News. “We’re going to come out of this with no debt, a platform that’s working really well and communicating with millions of people, and then we’ve got $200 million in the bank.”
Trending: This Jeff Bezos-backed startup lets you Become a landlord in just 10 minutes and you only need $100.
However, Nunes did not give a timetable for when the company could become profitable, leaving investors feeling uncertain and uneasy.
Trump’s recent moves show he is under pressure and may be willing to give up Truth Social to remain in the spotlight during the 2024 presidential election against Kamala Harris.
Read more:
“SECRET WEAPON FOR ACTIVE INVESTORS” Boost your stock market game with the #1 “news & everything else” trading tool: Benzinga Pro – Click here to start your 14-day trial now!
Want to receive Benzinga’s latest stock analysis?
This article Is Trump panicking and throwing the truth about social media under the bus since he agreed to an interview on X with Musk? originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
