Trump Media considering 'spinning off' money-losing Truth Social as stock plummets: report
While Donald Trump has amassed billions from various business ventures since his re-election, his Truth Social platform—where he posts major announcements and grievances—continues to hemorrhage money at an alarming rate, and significant changes may be forthcoming.
According to Mother Jones analyst Russ Choma, Trump Media and Technology Group, founded in 2021, is watching its DJT stock value plummet. Choma reports: "Trump's company is expected to announce its fourth quarter earnings soon. Judging from the numbers it produced through the first three quarters of last year, the results could be unimpressive. In September, Trump Media said that it had pulled in only about $2.6 million in revenue in the first nine months of the year."
With no indication that Truth Social will ever achieve profitability, there have been discussions about spinning off the platform from Trump Media to operate independently.
RELATED: 'It's a coin toss': Truth Social investors are 'truly uneasy' stock could become worthless
According to Choma, Trump's own posts are the platform's only drawing power, and years of operation offer no evidence that this will change or that profitability is achievable. The Mother Jones report notes: "To say the platform is rarely used besides Trump's postings is an understatement. Last May, the platform reportedly had just 359,000 active users. For comparison, X has roughly 600 million active users. Left-leaning social media startup BlueSky, often derided for its relatively small user base, has around 3.5 million active users."
Choma observed the stark contrast between current performance and original expectations: "When it launched in 2021, the founders imagined the company would have $1.8 billion in revenue by this point and 69 million active users on Truth Social."
You can read more here.