Former President Donald Trump defended his new social media platform, Truth Social, against critics who view its parent company as a meme stock with an inflated share price. Trump accused detractors of being “Radical Left Democrats” and emphasized the importance of the platform in getting his message out. He also highlighted the financial potential of Truth Social for himself, as he owns a majority stake in the company worth billions of dollars.
Despite the excitement around Truth Social, the platform’s parent company, Trump Media & Technology Group, has faced skepticism and criticism. Short sellers have targeted the stock, and the company has reported a significant net loss. The stock price has been volatile, with significant fluctuations, leading to doubts about its long-term performance. While Trump Media has a high market cap, its success is closely tied to the popularity and relevance of Trump himself.
Trump’s own following on Truth Social is much smaller than his previous following on larger platforms like X, where he had more than 87 million followers before being banned in the aftermath of the Jan. 6, 2021 Capitol riot. Despite this, Trump praised the growth of his following on Truth Social, which he described as “very good for a startup” and growing quickly. The platform saw roughly 5 million visits in February, which is a fraction of the user base of larger social media companies like Facebook.
In his posts promoting Truth Social, Trump emphasized the platform’s effectiveness in getting his message out, stating that if it didn’t work, he wouldn’t use it. He also highlighted the potential for growth and the excitement surrounding the platform’s future. However, critics point to the lack of transparency from Trump Media regarding key performance indicators like signups, revenue per user, and active user accounts, which could raise concerns about the platform’s long-term viability.
As Truth Social continues to evolve and grow, it faces challenges related to Trump’s political, legal, and financial standing. The success of the platform is closely linked to the ongoing relevance and popularity of Trump as its founder and public face. Despite Trump’s confidence in Truth Social’s potential, questions remain about its ability to compete with established social media giants and maintain its current trajectory. Ultimately, the future of Truth Social will depend on its ability to attract and retain users, generate revenue, and navigate the competitive landscape of the social media industry.
