(RepublicanJournal.org) – Truth Social, former President Donald Trump’s alternative to platforms like Meta and X/Twitter, took off with a bang when Trump Media made its debut on the public stock exchange. But now that MAGA supporters and trend buyers have purchased their shares, the company could be in trouble. Reports on its losses show Truth Social’s finances have been struggling badly.
Trump media had a strong opening day on the stock market, closing on March 26 at almost $58 per share. Supporters of the former president were among the enthusiastic buyers ready to invest in Truth Social, quickly boosting its value. But the jump was brief, and the company closed at $48.66 on April 1 — down 21% from its strong opening.
The sharp spike and drop in value may have been the result of most buyers being participants in a meme stock trend. These short but massive bursts of small share purchases result from social waves instead of traditional investment portfolios, temporarily inflating a company far beyond its actual worth. An almost immediate wave of share sales usually follows, dropping the stock’s price and prompting others to panic-sell as numbers continue to plummet.
GameStop saw a similar meme-based surge in January 2021, when its shares jumped from a few dollars to $81.25 each. The market rebounded in a single day, down to $15.94 a share, and the company’s value yo-yoed violently for a few years as a result. Gamestop no longer sees massive upward and downward spikes on the New York Stock Exchange, but it has continued to see a downward trend ever since that one social media-triggered spike.
Another likely reason behind Trump Media’s April 1 stock drop is a financial disclosure that was released on the same day. The document revealed major losses in 2023 and noted “substantial doubt” that the company would be able to stay afloat.
Trump owns 57.3% of Trump Media’s stock, but he isn’t allowed to sell any of it for six months due to a “lock-up” agreement. Attempts after that to unload his shares could trigger another massive drop in the company’s value.
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