It’s not often a company’s main shareholder promotes a rival outlet. Then again, Donald Trump is not an ordinary shareholder and Trump Media (Truth Social) is not an ordinary stock.
Shares in Truth Social sold off after Trump returned to X following his recent interview with Elon Musk, and have now fallen 70 per cent since March’s peak.
There have been rallies along the way, with the stock popping higher as Trump’s election chances soared in the first half of July. Still, it’s been one-way traffic lately as Trump’s political fortunes tumbled.
Politically, it makes sense for Trump to return to X, where he has 89.4 million followers, compared with 7.5 million on Truth Social.
As for the stock, Trump must know it remains wildly overvalued. Truth Social is still valued at $4.8 billion (€4.4 billion), despite recording revenues of just $837,000 in the second quarter.
Trump owns almost 60 per cent of the company, and may be tempted to cash in at the end of next month, when the six-month lock-up period that prevents insiders from selling shares expires.
Truth Social investors might see that as disloyal, but they can’t say they weren’t warned. Trump will do what suits him – not his investors.
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