The Truth Social platform, owned by Trump Media & Technology Group, experienced a significant drop in its stock price, plummeting 9% to its lowest level since going public last week. This decline has led to a loss of nearly $2 billion in the value of Donald Trump’s stake in the company over the course of the week. The shares, which initially surged to $79.38 upon Nasdaq trading debut, have fallen by as much as 47% to $41.90 as of Friday, resulting in an overall loss of about a quarter of their value.
The decrease in Truth Social’s stock price highlights concerns regarding the company’s financial performance, with reported losses of $58 million on meager revenue of $4.1 million last year. Billionaire Barry Diller, chairman of IAC, criticized the company, labeling it a “scam” and its investors as “dopes” due to lack of revenue. In response, a Trump Media spokesperson defended the company, attributing the backlash to those who oppose its commitment to allowing diverse political viewpoints on the platform, suggesting a clash with mainstream narratives. Despite controversy and market challenges, Truth Social continues to navigate its position in the public eye.
