A surprising surge in value
In recent months, Truth Social, the social network founded by Donald Trump, has seen an exponential increase in its valuation, exceeding the value of X Holdings, Elon Musk’s company. Currently, Trump Media & Technology Group (TMTG) is valued at more than 10 billion dollars, an extraordinary result considering that its shares have more than quadrupled since the end of September. This leap has attracted the attention of investors, making the platform a topic of discussion in the financial landscape
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The Financial Context of Truth Social
Despite the impressive market valuation, Truth Social’s financial data tell a different story. In the first six months of 2024, the company’s revenues were only 1.6 million dollars, an amount that clearly does not stand up to industry giants such as Reddit and Snap, which recorded 524 million and 2.4 billion dollars respectively. This gap raises questions about the sustainability of Truth Social’s business model and the real attractiveness of the
platform for users.
Donald Trump’s role in the platform’s success
The assessment of Truth Social seems to be strongly influenced by the figure of Donald Trump. With a 57% stake in the company, the value of Trump Media’s shares has grown considerably, bringing its share to almost 4 billion dollars. Investors seem to be betting on the possibility of a Trump victory in the next elections, seeing Truth Social as an alternative to traditional social media. However, the platform has faced criticism regarding content moderation, with concerns about the spread of misinformation and hate speech
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The growth and challenges of Truth Social
Truth Social was launched in 2021 as a response to restrictions imposed by other social platforms. Although it has seen growth in availability, adoption has remained limited, attracting primarily a conservative audience. The lack of moderation and criticism of freedom of expression have raised questions about the future direction of the platform. Investors, however, continue to see potential in this initiative, fueling speculation and interest in the market
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