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lite.cnn.com - on gopher - inofficial
ARTICLE VIEW:
/
Trump’s stock tumbles again after Truth Social announces it’s
getting into streaming
By David Goldman, CNN
Updated:
11:01 PM EDT, Tue April 16, 2024
Source: CNN
Investors in Trump Media & Technology Group’s stock are throwing in
the towel.
Shares of TMTG () tumbled 14% Tuesday after . Driving the stock lower
Tuesday: The company’s premier product, Truth Social, , a notoriously
cost-intensive business in which media behemoths like Disney have .
TMTG’s stock, majority-owned by former President Donald Trump, is
down more than 70% from the all-time high it set on March 26, the day
after it merged with a blank-check acquisition company to go public.
Although the company is still worth billions of dollars, it is
struggling to make money and desperate for cash. to be careful if
they choose to trade the stock, because the company doesn’t have the
fundamentals to back up its sky-high valuation.
Trump Media in 2023 and made just $4.1 million in revenue. So, it
announced Monday it would sell 21.5 million more shares to the public
to raise cash — even though that would dilute the value for existing
shareholders.
A home for ‘suppressed’ content
The streaming initiative didn’t give investors any reason to get
enthused about the company. Truth Social said it spent the past six
months testing its web, iPhone and iPad apps for live TV streaming, and
it hopes to launch a content delivery network to stand up streaming
apps for phones and tablets — and eventually smart TVs.
Truth Social suggested its streaming network could host live news,
religious programing and family-friendly shows, movies and
documentaries that “has been cancelled, is at risk of cancellation,
or is being suppressed on other platforms and services.”
“With our streaming content, we aim to provide a permanent home for
high-quality news and entertainment that face discrimination by other
channels and content delivery services,” said TMTG CEO Devin Nunes, a
former Republican congressman for California in a statement. “There
is a lot of great content that simply can’t find an audience for
unjust reasons, and we want to let these creators know they’ll soon
have a guaranteed platform where they won’t be cancelled.”
Truth Social’s latest push sounds similar to Elon Musk’s X, which
claims to be the streaming platform that best defends free speech. But
X has hundreds of millions of active users — hundreds of times Truth
Social’s audience — and has still struggled to attract advertisers
after Musk reshaped the business, allowing hate speech and conspiracy
theories to run rampant on the platform.
Trump’s association with the brand appears to be the primary reason
for its sky-high valuation. That helped turn shares into a — that is,
the company doesn’t trade on its fundamentals so much as it trades on
emotional responses.
Trump added billions of dollars to his net worth after TMTG’s merger
with the blank check company in late March. But his shares’ value has
plunged from a peak of $5.2 billion to about $1.8 billion. Trump’s
net worth fell roughly $300 million Tuesday from the stock’s plunge.
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