As reported by CNBC on May 24, Truth Social, the flagship product of Trump Media, is struggling to grow its user base in the U.S., according to new data. This is concerning for shareholders of Trump Media, as Truth Social is a key driver of the company’s financial status.
The user and engagement data from Similarweb and two other data firms, analyzed by CNBC, shows that Truth Social’s performance has generally declined. While there was a brief growth spurt following Trump Media’s merger, this rise has now reversed. The data also reveals a decrease in the number of users, interactions, and time spent on the site.
When questioned about their views on Truth Social’s results, Trump Media responded by stating that they do not collect or use data regarding their performance. This lack of tracking and analyzing key data suggests a serious oversight in management skills. Furthermore, their dismissive attitude towards CNBC and the data firms’ findings indicates a lack of transparency and professionalism.
Wall Street analysts are also likely to view Trump Media unfavorably, with the data firms’ findings potentially reinforcing the company’s reputation as a “meme stock” with an inflated market capitalization. This further emphasizes the need for investors to carefully consider their position in the company.
In light of these concerns, the best course of action for Trump Media investors may be to sell their shares and reinvest in a more promising company. With a leadership that seems unable to navigate the challenges of running a successful business, the future of Trump Media remains uncertain.
Overall, the data on Truth Social’s performance raises serious doubts about the company’s ability to grow and compete in the market. Shareholders should closely monitor developments and consider their investment options carefully in light of these findings.
