Barry Diller has been vocal about his criticisms of Truth Social, calling it a "silly" platform that's not a serious threat to Twitter or other social media giants.
He believes the platform's lack of advertising revenue and limited user base make it difficult to compete with established players.
Diller also thinks Truth Social's focus on being a conservative alternative to mainstream social media is a narrow approach that won't resonate with a broader audience.
Truth Social's struggles to gain traction and attract high-profile users have only fueled Diller's skepticism about its long-term viability.
Barry Diller's Criticism
Barry Diller, the chairman of IAC and Expedia Group, thinks Truth Social is a scam.
He called it "ridiculous" because the company has no revenue, with a total revenue of just $4.1 million in 2023.
Diller thinks investors are buying into Truth Social for reasons other than financial soundness, which he believes is "stupid."
He also thinks the company's shareholders are "dopes" for investing in it.
Diller doesn't think Truth Social will become a bigger business even if Donald Trump wins the presidency.
He hopes Trump will just play golf for four years if he gets elected.
Diller's criticism of Truth Social is not surprising, given the company's financial struggles and lack of revenue.
The company lost $58 million in 2023, which Diller thinks is a significant red flag.
Despite Diller's criticism, Truth Social's stock price surged to as high as $79.38 on its first day of trading.
However, the stock price has since plummeted by 49% to $40.49.
Short-sellers are already betting millions against the company, which suggests that many people are skeptical of its prospects.
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Barry Diller: Truth Social a Scam
Barry Diller, chairman of IAC and Expedia Group, thinks Truth Social is a scam.
Truth Social's parent company, Trump Media & Technology Group, has no revenue, with total revenue in 2023 being just $4.1 million.
Diller believes investors are buying the company for reasons other than financial soundness, calling them "dopes".
Trump Media & Technology Group lost $58 million in 2023, which Diller thinks should be a major red flag for investors.
Diller thinks Truth Social's appeal is short-lived and that its stock price will continue to drop.
Diller also stated that Truth Social's potential for future growth is limited, saying "Why would it be bigger?".
He believes that former President Donald Trump's popularity is only due to his entertaining nature, saying "Look, he's only interesting now because he's out there entertaining the folks".
Diller's blunt assessment of Truth Social's prospects has been echoed by short-sellers who are already betting millions against the company.
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