The Social Truth Can’t Meme Its Way To Be The Next GameStop

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Get started Reddit and Truth Social, users have been trying to recreate the magic of the meme Trump Media and Technology GroupThe company behind Truth Social, which promoted companies like Gamestop in 2021. So far, they haven’t been very successful.

Social Truth, former President Donald Trump’s Twitter account, lacks two key elements of past campaigns: originality and business complexity. Major hedge funds were shorted Gamestop, betting the price will go down. At this time, the stock is mainly owned by wholesalers.

Unlike other social networking companies, the company does not disclose how many users it has, but it has previously said that only 9 million people are registered on the site, compared to more. three billion monthly users on Facebook. TruthSocial’s visitors dropped from 5.4 million in January to about 5 million in February, according to Internet research firm SimilarWeb. The lack of users on the site has led to a lack of revenue.

On the Wallstreetbets subreddit, the home of meme stock boosterism, many users are not buying what Truth Social is selling.

“If you invest for long enough you will lose everything. So it’s just a game,” he wrote Reddit user Rich4718. “If you think Donald Trump is going to make a good way to raise money, you’re an idiot.”

The company went public just last week, and has experienced price volatility. On Monday, the stock fell nearly 20 percent, wiping $2 billion off its value.

In a filing Monday, the company said it had just over $4 million in cash and $58 million in net losses. This comes after the auditor of the Trump Media and Technology Group made a shocking admission: the loss of the company “casts serious doubt on its ability to continue,” according to filings with the Securities and Exchange Commission on March 25.

And yet, the company is valued at about $7 billion, even though it has reported losses. The valuation is supported by Trump fans who see investing in the company as a way to support the former president. In some cases, these investors have a genuine belief that Truth Social can become a major player in social media.

Albert Choi, a law professor at the University of Michigan, says that investors in Trump Media may be attracted to non-economic factors, such as increasing the value of creating hype.

“If that’s what motivates you, then you don’t really care if the company is making money,” says Choi.

“I believe DJT is money for Donald Trump, not Truth Social,” Reddit user autsauce, who declined to share his real name, tells WIRED. “If market participants start asking that question, which I’m betting they will, they’ll come to a very different price point for calculating Truth Social in a silo.”

Choi also said that Trump’s victory in the presidential election could damage the company’s stock, as investors who think they need to support the former president financially by making money could disappear.

“I think the interest in stocks will end,” Choi said.

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