Nov 06, 2024 01:40 PM IST
Truth Social shares rallied during the final stages of the campaign, more than tripling in value in weeks amid forecasts of Trump’s higher chances of winning
Truth Social, the social media platform owned by Donald Trump, posted narrowing losses as seen in a surprising exchange filing during the night of the elections, The Guardian reported.
This comes after its shares rallied during the final stages of the campaign, more than tripling in value in weeks, according to the report. The report added that this was because of forecasts indicating Donald Trump had a higher chance of winning.
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This caused Nasdaq to halt the trading of Trump Media & Technology Group (TMTG) stock due to the high volatility after prices rose and fell by huge percentages.
The social media platform’s shares rose 6% after its earnings were released. On the same day, it had surged as much as 18%, before closing at 1.2% into the red.
Truth Social is still very small compared to Meta’s Facebook or Instagram, TikTok, and Elon Musk’s X (Formerly Twitter).
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The company’s revenue fell almost 6% to $1 million, but its losses narrowed to $19.2 million from $26 million compared to the same period last year.
This loss was related to egal fees, acquisition costs and research and development spending.
However, its valuation is still $6.8 billion, meaning Trump’s majority stake in it is worth almost $3.9 billion.
The company has become known as a “meme stock,” joining the ranks of video games retailer GameStop for instance. Such stocks have a history of rattling Wall Street with unexpected rallies.
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