Truth Social ( (DJT) ) has fallen by -9.78%. Read on to learn why.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
Truth Social, the company behind the social media platform launched by former U.S. President Donald Trump, has seen its stock price fall by 9.78% over the past week. This decline comes amid a series of financial challenges and strategic shifts. The company reported a larger-than-expected financial loss for the third quarter, with revenues declining by 3.8% compared to the previous year. The increased legal expenses and declining advertising revenues have been cited as major contributors to the poor financial performance.
In addition to financial woes, Truth Social has faced legal scrutiny, as it was recently targeted by a secret subpoena seeking its bank records. This development has raised concerns among investors about potential legal and financial ramifications. Despite these challenges, the company continues to pursue strategic partnerships, including a venture with Crypto.com to introduce prediction markets on its platform. This move is part of a broader strategy to diversify its offerings and enhance user engagement.
Despite the recent downturn, Truth Social’s management remains optimistic about the company’s future. CEO Devin Nunes highlighted the company’s financial assets, which have grown significantly since going public, and emphasized plans for mergers and acquisitions to drive long-term value for shareholders. However, with no Wall Street analysts currently offering ratings or price targets for the stock, the market remains cautious about Truth Social’s prospects in the volatile social media and technology landscape.