The popularity of Truth Social, which had a dazzling debut, has faded.
Shares of Donald Trump’s social media company plunged 21% on Monday, wiping out the gains from its debut last week, returning to its pre-IPO price. The New York Times (NYT) commented, “The early fever fades.”
According to foreign media, including the New York Times, the parent company of Truth Social, Trump Media & Technology Group (from now on referred to as Trump Media), ended the day at $48.66, a 21.5% plunge. The market value of Trump Media decreased by about $2 billion, down to $6.5 billion. His stake, which had risen to $4.88 billion last week, also shrunk to $3.83 billion.
Trump Media was indirectly listed on the New York Stock Exchange by merging with the particular purpose acquisition company Digital World Acquisition (DWAC) on the 26th of last month. The DWAC stock price surged approximately 255% on the 28th of last month when it announced the merger with Trump Media.
The sharp decline of Truth Social seems to be influenced by the company’s performance announced on the day. Trump Media announced on the 1st that it had a net loss of $58.2 million last year. Advertising revenue, which accounts for most of the company’s sales, remained at $4.1 million. Most of the loss was due to interest costs of $39.4 million.
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