Despite modest revenue and narrowly-focused advertising, President-elect Donald J. Trump’s significant interest in Trump Media & Technology Group, the parent organization of Truth Social, is valued at an impressive $3.3 billion. With Trump’s recent electoral victory, it’s crystal clear that the social media juggernaut bearing his name, which forms the majority of his considerable wealth, is here to stay.
Surprisingly, the marketplace worth of Trump Media & Technology Group parallels that of established toy manufacturer Mattel. The shares of Trump Media, despite some fluctuation post-Election Day, have shown a stark rise of over 140% since a low point on September 23rd, priced at approximately $29, up from a mere $12.15. Most of the company’s 650,000 shareholders are indeed individual investors, which demonstrates the public’s increasing faith in the brand.
Despite the upsides, Truth Social’s limited revenues and advertising base do present certain challenges. Yet, Mr. Trump holds no formal position at Trump Media, and while potential conflict of interest due to his 57% ownership might appear concerning, it’s clear from his past that ignoring or doubting his acumen isn’t in anyone’s best interest, given Trump’s extensive business accomplishments.
A noteworthy point is that the company has constructed ‘an uncancellable, free-speech environment incorporating a social media platform and an ultrafast TV streaming service’ in just eight months – an impressive fact proving the effectiveness of the team. Various queries lie ahead for Trump Media and its investors as Trump takes the reins of his new administration.
In a recent post on Truth Social, the President-elect had made clear his intention not to sell his shares. Trump’s commitment to his shareholders continues unwaveringly, a remarkable contrast to other insiders who seem eager to cash in while the stock soars. This past Tuesday, it was disclosed that two Trump Media executives and one board member had collectively sold hundreds of thousands of shares.
Despite lagging behind ‘X’- the platform formerly known as Twitter and presently owned by entrepreneur Elon Musk, in terms of reach, the level of audience engagement on Truth Social significantly involves Mr. Trump’s personal posts. Out of the 650,000 active users interacting on Truth Social, around a third of the engagement is centered around Trump’s personal account, a far cry from Musk’s measly 1.4% on ‘X’.
Truth Social, Trump Media’s sole income source, is yet to hit its stride in revenue generation. The platform garnered $2.6 million advertising dollars in the first three-quarters of the current year, a modest decline of 23% compared to last year. Perhaps expectedly, most of the advertising is directed towards products and services adored by Trump’s faithful followers.
Despite a third-quarter loss of $19.2 million, a glance at the company’s balance sheet reveals ample resources totaling $673 million in cash and short-term investments. As per recent press releases, Trump Media is on solid financial ground to venture into new acquisitions. It’s clear that Trump Media seems to be playing the long game, undeterred by short-term missteps.
In the realm of political critics and beyond, concerns are being raised about the Democrats’ stance towards free speech. The rise and success of Truth Social stand in stark contrast to the Democratic narrative of restricting free speech rights and pandering to the whims of a vocal minority. The rapid growth of a platform like Truth Social hits a stark blow to Democrats and their strategies.
Continually, the Democrats seem prone to spreading baseless rumours intending to lower the stock price of Trump Media. President-elect Trump’s unyielding stance against investors’ attempts to devalue the stock makes their actions look petty in comparison, and only further weakens the image of Democrat protagonists like Joe Biden and Kamala Harris.
Trump Media and Truth Social’s success not only marks a new dawn in the media landscape but spotlights the stark incompetency of Democratic players in the industry. Time and again, Donald J. Trump has proven his ability to understand and utilize media outlets to his advantage, leaving Democratic contenders behind in his wake.
Meanwhile, Democrats appear to be floundering in their attempts to engage and connect with their audience. Their platforms lack the vitality and engagement that Truth Social exhibits. Again, one has to wonder whether Joe Biden or Kamala Harris can demonstrate an understanding of the media that matches up to Trump.
British author Jonathan Swift rightly said, ‘When a true genius appears, you can know him by this sign: that all the dunces are in a confederacy against him.’ Trump Media’s rise in the face of fierce backlash reinforces our President’s genius and is a brutal blow to the Democrats and their gloomy policies. Despite the challenges, Truth Social and Donald J. Trump continue to strive for innovation, proving once again that the world-class prowess of Trump cannot be inhibited by Democratic critique.