After his party suffered a historic defeat in this week’s midterm elections, President Donald Trump’s Truth Social is following suit.
Shares of the social media platform’s parent company, Trump Media & Technology Group (TMTG), hit an all-time low after Trump’s candidate choices were roundly rejected by American voters. It turned out that the investors weren’t finished. Stocks fell another ten percent on Thursday, deepening steep losses. The stock even temporarily fell below $4, a dismal pit after the company’s $80 share price in March 2024, shortly after it merged with a blank-check acquisition company to go public.
Given the company’s dire financial situation — TMTG reported a staggering $238 million loss while earning less than $2 million — this is perhaps the clearest sign yet that the company is more of a bellwether for Trump’s popularity than a viable business.
Now that the president’s approval rating is at an all-time high, hovering at just 33 percent while his party is bombarded nationally, it’s no wonder his social media game isn’t faring much better.
As it became clear that it wasn’t gaining much real market share as a Twitter clone, the company made various efforts to pivot into everything from prediction markets to a war chest of rapidly depreciating Bitcoins. It even merged this year with a nuclear fusion company. But none of these efforts have gained visible traction.
Worse, some of the president’s most loyal supporters — who agreed to lend his company’s money despite massive losses — feel disillusioned. Oil and gas investor and engineer Chad Nedohin told the New York Times that he feels betrayed, saying TMTG has strayed too far from its supposed mission of promoting free speech.
He has since sold most of his shares.
“The original shareholders did the right thing for the right reason, but it is devastating that Trump is not the person we thought he was,” he told the newspaper.
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