Trump’s election win can’t keep Truth Social shares aloft

What next for the president-elect’s social network of choice?

Truth Social is Donald Trump's preferred social network. Photograph: Will Oliver/EPA
Truth Social is Donald Trump's preferred social network. Photograph: Will Oliver/EPA

Stocktake recently cautioned that shares in Trump Media & Technology Group might spike if Donald Trump won the presidential election, but any gains would likely be short-lived.

That was an understatement. Truth Social shares soared 35 per cent on Wednesday morning, before quickly turning lower. By Thursday, the stock was below pre-election levels.

Further falls are surely a case of when, not if. Even after the sell-off, Truth Social was valued at almost $6 billion (€5.6 billion) – some valuation, given the company’s admission on election day that revenue fell in the third quarter, to just $1 million.

Between March and September, the stock fell from $79 to below $12.

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Shares then took off as traders bought in anticipation of a Trump victory, but there is no obvious catalyst for the stock going forward.

The company could try to grow its business, but breaking into the crowded social media space isn’t easy, especially when Trump supporters are already catered for by Elon Musk’s X.

Fundamentals cannot be ignored indefinitely. Truth Social’s recent boost may prove as fleeting as the election excitement that fuelled it.