Truth Social, the social media platform founded by former US President Donald Trump, has been making waves in the tech world.
It's been reported that Truth Social has gone public, but what does this mean for users and investors alike?
Let's take a closer look at what's happening with Truth Social's public listing.
Truth Social's parent company, Digital World Acquisition Corp. (DWAC), merged with the social media platform in a deal worth $1.2 billion.
The public listing of Truth Social is a significant development, but what exactly does it mean for users of the platform?
The merger with DWAC has given Truth Social a valuation of around $10 billion.
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Trump's Stock Performance
The stock of Trump Media & Technology Group, the parent company of Truth Social, started trading on the Nasdaq after merging with a publicly traded shell company.
Shares of Trump Media & Technology Group corporation soared 59% early on in its first day of trading, before dropping back to end at $57.99 - a gain of 16% on the day.
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The company's valuation of around $10 billion is questionable, given its underlying business.
Trump Media & Technology Group has about $300 million of cash, but its annual revenue is only around $5 million, and it's losing money.
The company's revenue comes from advertising and paying subscribers, but neither of these sources is growing rapidly.
Almost everyone buying the stock are likely Trump supporters, making it more of a purchase out of loyalty rather than a good long-term investment.
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Truth Social's Public Debut
Truth Social's parent company, Trump Media & Technology Group, is now officially publicly traded on the Nasdaq.
Shares of Trump Media & Technology Group soared 59% early in its first day of trading, but then dropped back down to end at $57.99, a gain of 16% on the day.
The company was valued at around $10 billion at the beginning of trading.
Trump's business merged with a publicly traded shell company to go public.
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The company only has annual revenue of about $5 million and is losing money.
It's losing money and has annual revenue of just $5 million, which is a far cry from its $10 billion valuation.
The company has about $300 million of cash, but that's not enough to justify such a high valuation.
Frequently Asked Questions
Are Truth Social posts public?
Truth Social posts are not entirely private, as they can be seen by the poster, their followers, and anyone who views the public side of the account. However, the extent of public visibility may depend on the account's settings.
Is Truth Social gaining users?
Yes, Truth Social has gained a significant number of users, with a 1.76 million follower increase in just one year, reaching 4.83 million followers in January 2023. This rapid growth has surpassed 6 million followers, indicating a strong user base.
Who currently owns Truth Social?
Truth Social is owned by Trump Media & Technology Group Corp., a company majority-owned by U.S. President Donald Trump. This ownership structure is key to understanding the platform's mission and values.
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