Trump’s Truth Social Stock Is Absolutely Tanking

According to Futurism, Trump Media and Technology Group’s stock hit a record low this week, trading at just $10.73 per share. The company has crashed nearly 70% since January and is down over 80% from its peak following the March 2024 merger with Digital World Acquisition Corp. TMTG lost a staggering $55 million in the quarter ending September 30 while generating less than $1 million in revenue. Despite some user growth this year, Truth Social remains far smaller than competitors like X and Bluesky. The company recently tried pivoting into cryptocurrency prediction markets and holds around $1.3 billion in Bitcoin, which has also lost substantial value recently.

Meme Stock Reality Check

Here’s the thing about meme stocks – they eventually face reality. Truth Social rode a wave of political enthusiasm straight into public markets, but now the bills are coming due. Burning $55 million to make less than $1 million? That’s not a business model, that’s a bonfire. And throwing crypto into the mix feels desperate, like watching someone double down on a bad bet.

Competitive Landscape

Look, the social media space is brutal even for well-funded startups. Truth Social’s user numbers might be up slightly, but they’re competing against platforms with hundreds of millions of active users. Elon Musk’s X has its own problems, but at least it has scale. Bluesky is growing organically. Truth Social? It’s basically a political echo chamber with a stock ticker. When your entire value proposition hinges on one person’s brand, what happens when that brand gets distracted?

Crypto Gamble Backfires

So they loaded up on Bitcoin right before the crypto crash? Perfect timing. Holding $1.3 billion in volatile digital assets while your core business hemorrhages cash seems… risky. Trump might be a crypto proponent, but markets don’t care about political endorsements. Bitcoin’s plunge below $94,000 means those reserves have taken a serious hit. Basically, they bet the farm on two highly speculative assets – Trump’s brand and cryptocurrency. How’s that working out?

What’s Next?

Now we’re left wondering how much longer this can continue. The stock is barely above Digital World’s 2021 IPO price, which suggests the initial hype has completely evaporated. They’re running out of walls to throw things at. Another few quarters like this and they’ll need more than meme stock magic to survive. The real question is whether investors will keep playing along when the numbers look this bad.