News Business Truth Social: An In-Depth Look at Donald Trump's Media Platform

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Will Truth Social Solve Donald Trump's Financial Woes?

By Business Reporters

Published: April 3, 2024

The Share Price Rollercoaster

The share price of Donald Trump's media company has been on a wild ride since its official listing on the Nasdaq stock exchange last week. While it has dipped from its initial high, the company still boasts a staggering valuation of over $7 billion (£5.6 billion). But what lies behind this eye-popping figure?

Unveiling Truth Social

Trump Media & Technology Group emerged in 2021, a brainchild of two former contestants from Mr. Trump's reality TV show, The Apprentice. Their vision? To create an alternative to mainstream social media platforms after Mr. Trump faced bans from Twitter and Facebook for alleged incitement of violence. In 2022, Trump Media launched its sole public product: Truth Social, a social media platform.

What Is Truth Social?

Truth Social mirrors many features of X (another social media giant). Users can post 'truths' or 'retruths,' engage in direct messaging, and encounter 'sponsored truths' (read: advertisements).

User Base and Reach

Approximately 9 million Truth Social accounts have been created since its inception. While it doesn't disclose exact user numbers, research firm SimilarWeb estimates around 5 million monthly website visits in February. For context, TikTok received over 2 billion visits, and Facebook surpassed 3 billion during the same period. X, a direct competitor, recorded 104 million visits.

The Financial Conundrum

Here's the twist: Truth Social isn't turning a profit. In 2023, Trump Media reported a staggering loss of nearly $60 million, with advertising revenue barely scraping $4 million. The financials raise eyebrows, especially when compared to its sky-high stock valuation. Back in 2013, Twitter's market debut came with $660 million in revenue and a market value of roughly $24 billion. By 2021, Twitter's value had soared to over $5 billion before Elon Musk's acquisition for $44 billion.

Trump's Role

Mr. Trump's involvement with the firm resembles his property licensing deals. He lends his name to promote a business primarily run by others. In this case, he also commits to posting non-political messages first on Truth Social. Unlike traditional licensing fees, Mr. Trump receives shares in the new start-up.

Truth Social may not be the financial savior Mr. Trump hoped for, but it remains a fascinating chapter in the ever-evolving landscape of social media.

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