Last week, Trump Media & Technology Group (TMTG), the parent company of Truth Social, went public on the Nasdaq after merging with Digital World Acquisition Corp (DWAC).
TMTG stock surpassed expectations, rising nearly 25% by Thursday from its initial Monday close.
This increased the value of former President Trump’s 78.75 million TMTG shares to approximately $4.87 billion, boosting his net worth.
However, TMTG remains unprofitable and analysts were skeptical given its reliance on Trump’s involvement.
A SEC filing stated TMTG’s success depends on Trump’s “significant” time and popularity, noting adverse reactions to him could hurt the business.
“TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of its Chairman, President Donald J. Trump. The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer,” the filing said.
“Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues, results of operations, and its ability to maintain or generate a consumer base,” the filing added.
Truth Social saw increased traffic during Trump’s live responses criticizing President Biden’s “Angry” State of the Union address.
While the platform struggled with demand at times, the event highlighted its role as the only site hosting both Trump and Biden, with Trump characterizing Biden’s speech and response in sharply critical terms.
“That may be the Angriest, Least Compassionate, and Worst State of the Union Speech ever made. It was an Embarrassment to our Country!” Trump wrote.
“He’s done nothing for Israel compared to what I have done. It’s only words he speaks, not TRUTH!”
“He made Iran RICH. This is why we have the problems in the Middle East. With me, Iran was BROKE. He is the reason that the Middle East is blowing up!”
“Biden’s speech last night is getting ‘panned’ all over the World. Only the Radical Left lunatics are trying to make the best of it. It took him 41 minutes to talk, briefly, about Immigration and the Border, on the topic of which he was very weak. No talk of weaponization against his very calm and nice opponent. Angry as hell, this guy is a PSYCHO!”
“The Fake News Media is taking Crooked Joe Biden’s anger, and calling it ‘fiery.’ That’s why they’re the Fake News, and there’s nobody like them!” he wrote.
“The Story is that he got through it, he’s still breathing, and they didn’t have to carry him out in a straitjacket. Other than that, he did not do a very good job!”
