Trump Media & Technology Group Corp. (TMTG), the company behind the social media platform Truth Social, is facing another day of steep stock losses. The stock, which is heavily tied to the fortunes of former President Donald Trump, who holds a 64.9% stake, has been declining in premarket trading on Tuesday, following a sharp drop on Monday.
This downward trend comes on the heels of TMTG’s disappointing second-quarter earnings report, which revealed a $16.4 million loss and a meager $837,000 in revenue. The company’s operating metrics for Truth Social have been struggling, and analysts remain unconvinced about its fundamentals and have criticized its valuation.
Adding to the pressure on TMTG, Trump himself returned to the X platform (formerly Twitter) last week, engaging in a lengthy interview with X owner Elon Musk. This move has heightened concerns that Trump may divide his communication efforts between Truth Social and X, potentially diverting attention and users away from his own platform.
The interview, which featured a discussion on various topics like policy, economy, and geopolitics, drew considerable attention on X, garnering approximately 158 million views. While the interview showcased Trump’s continued influence and presence on social media, it has undoubtedly cast a shadow on Truth Social and its ability to attract and retain users.
As of Tuesday morning, TMTG stock was down 3% to $24.13 in premarket trading. Investors are closely watching the developments at TMTG, as the company’s future hinges on its ability to overcome the challenges it currently faces.
