Trump Media Empire Takes a Tumble: Can Truth Social Regain Its Footing?

Donald Trump's foray into the social media world has been anything but smooth sailing. After his personal fortune in Trump Media & Technology Group (TMTG) soared to over $6 billion when shares made their public debut, it has now taken a nosedive, falling more than 70% from its peak and reducing Trump's stake to under $2 billion on paper. TMTG's Truth Social platform, which gained popularity among Trump supporters, has been plagued by losses and dwindling revenue. Ad sales have plummeted due to changes in revenue sharing with advertisers, ranging from questionable miracle cure products to conservative dating apps. To add insult to injury, Trump Media shares hit an all-time low this week as the stock tanked 6% to $16. 98 per share.Investors are blaming short-sellers for manipulating the stock's price, but experts like Ihor Dusaniwsky argue that long-selling and not short-selling is primarily responsible for the decline in recent weeks. TMTG shares have been behaving more like meme stocks lately - their prices are influenced heavily by social media buzz and speculation rather than actual business performance. After Trump survived an assassination attempt, his stock price skyrocketed on online hype about his presidential prospects. However, those gains quickly evaporated when polls showed a resurgence for Biden. Now, as the September 19 lock-up expires and allows insiders like Trump to sell their shares, there's growing uncertainty surrounding the company's future and whether it can bounce back from this slump.