Donald Trump's Stake in Truth Social

Donald Trump maintains a roughly 60% interest in Trump Media & Technology Group (DJT), the company behind the Truth Social platform. With DJT's current market cap of around $3.3 billion, Trump's stake is worth approximately $2 billion.

• Trump said he has "absolutely no intention" of selling his shares in Truth Social, despite the stock's decline since the company went public in March.
• After the public debut, Trump's stake was initially worth over $4.5 billion.
• Shares have fallen about 60% since the company's market debut.

Truth Social's Performance and Challenges

Truth Social faces challenges in competing with established social media platforms like Twitter (now X) and Facebook (Meta). The company's fundamentals have been questioned, with some key points:

• In Q2 2024, DJT reported a net loss of $16.4 million and revenue of just under $837,000, a 30% year-over-year drop.
• The stock has been on a bumpy ride, with its performance often tied to news cycles and events related to Donald Trump.
• Following Biden's stumble in a presidential debate and his subsequent withdrawal from the 2024 race, the stock initially surged but then fell.
• With Kamala Harris now leading Trump in polls for the 2024 election, the stock has remained under pressure.

Donald Trump's Legal Troubles

Donald Trump's legal issues have also impacted the performance of Truth Social's stock:

• In May 2024, Trump was found guilty on all 34 counts of falsifying business records intended to influence the 2016 presidential campaign.
• The stock dropped 5% the day after Trump's conviction.
• Trump's sentencing in the hush money case has been delayed until November 26, 2024.

Truth Social's Origins and Competition

Truth Social was founded by Donald Trump after he was kicked off major social media apps like Facebook (Meta) and Twitter (now X) following the January 6 Capitol riots in 2021. However, Trump has since been reinstated on those platforms:

• Trump officially returned to X (formerly Twitter) in mid-August 2024, after about a year's hiatus.
• Truth Social aims to compete with established social media incumbents, but its ability to do so remains uncertain.

Stock Market Performance and Outlook

The performance of Truth Social's stock (DJT) has been closely watched by investors and market analysts:

• The stock remains near the low end of its 52-week range and far off its record high of just over $79 per share.
• Stakeholders, including Trump, were subject to a six-month lockup period before being able to sell or transfer shares, which expired on September 21, 2024.
• The stock's future performance may depend on Truth Social's ability to gain traction and compete effectively in the social media landscape, as well as the outcome of Trump's legal battles and the 2024 presidential election.