Truth Social Can’t Meme Its Way Into Becoming the Next Gamestop

1 week ago 46

On Reddit and Truth Social, users have been trying to recreate the meme stock magic for Trump Media and Technology Group, the company behind Truth Social, that boosted companies like Gamestop in 2021. So far, they haven’t been too successful.

Truth Social, former President Donald Trump’s Twitter copycat, lacks two essential ingredients to the narrative of previous campaigns: underlying fundamentals and the foil of institutional investors. Large hedge funds had shorted Gamestop, betting the price would go down. This time, the stock is primarily owned by retail investors.

Unlike other social media companies, the company doesn’t disclose how many users it has, but has previously said just 9 million people have signed up for the site, compared with over three billion monthly active users on Facebook. TruthSocial visitors have declined from 5.4 million in January to around 5 million in February, according to web analytics firm SimilarWeb. The site’s lack of users has contributed to poor financial performance.

On the Wallstreetbets subreddit, home of meme stock boosterism, most users aren’t buying what Truth Social is selling.

“If you invest in this on a long enough timeline you will lose everything. Thus is strictly a movement play,” wrote Reddit user Rich4718. “If you think Donald Trump is going to create an income positive social media platform you are an absolute fucking moron.”

The company started trading publicly last week recently, and has already experienced wild swings in price. On Monday, the stock slid nearly 20 percent, erasing $2 billion in value.

In a filing on Monday, the company said it had just over $4 million in revenue and $58 million in net losses. This comes after t...

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