Investors in Truth Social, the Donald Trump-backed social media platform, watched their share prices plunge from $66 in its public debut in March to just $32 last Friday. But as The Washington Post reported, for Trump’s supporters turned investors, the bottom line isn’t the point. Their decision to put money in the platform is an exercise in loyalty to Trump, who they not only see as a political leader but also an astute businessman who can turn things around.
One of the investors, Jerry Dean McLain, bought up hundreds of shares collectively worth $25,000. In the last two weeks, he’s lost half of that money. But he is putting his trust in Trump. “I know good and well it’s in Trump’s hands, and he’s got plans,” he said. “I have no doubt it’s going to explode sometime.”
Many users of Truth Social, taking the former president’s lead, migrated there from Twitter, now X, after the former president accused the platform of silencing him. Being an investor signals additional commitment to Trump and his brand.
“Truth Social has created a free-speech beachhead against Big Tech for a fraction of the start-up and operating costs and the legacy tech corporations incurred, while having no debt, more than $200 million in the bank, and the support of hundreds and thousands of retail investors who fervently believe in your mission,” said Shannon Devine, a spokeswoman for Trump Media & Technology Group, an umbrella corporation that controls Truth Social.
Their loyalty may be put to the test as Truth Social continues to hemorrhage money. The company lost $3.5 million since its public debut last month. Trump Media has largely served to enrich its chief executives with generous salaries and bonuses worth millions, even as it lost $58 million last year after generating just $4 million in revenue. And even if Truth Social can claim a devoted following, that following remains tiny compared to the traffic on other platforms.
For now, some investors, like Florida interior designer Toff Schlanger, are willing to dismiss their loses as a product of “stock manipulation” from an “organized effort” to discredit the company by an anti-Trump deep state. At the same time, others have acknowledged the financial losses on Truth Social itself, with one user admonishing Trump: “Come on DJT, every time I buy more, the price drops more.”