Truth Social's inflated $5 Billion valuation will leave MAGA minion investors broke, says finance expert

Donald Trump's social media platform, Truth Social, is poised for financial disaster, despite its recent public debut and inflated $5 billion valuation. As reported by Jonathan Wolf at Above the Law, Truth Social's dismal financial performance and meager user base paint a bleak picture for its future.

Wolf points out the absurdity of this valuation, stating, "In a rational marketplace, this $5 billion valuation would be laughable. The first nine months of last year saw Trump Media incur a net loss of $49 million, while it took in a paltry $3.3 million in advertising revenue."

The parallels between Truth Social and Elon Musk's forced purchase of Twitter are striking. Both platforms claim to champion free speech, yet in practice, they serve as echo chambers for their owners' personal agendas and grievances. Musk's infantile edgelord posts have driven away advertisers and Twitter "is scrambling to find other revenue streams as advertising income dries up," while Truth Social's main draw is the incoherent ramblings of a 77-year-old facing nearly 100 felony counts across four criminal indictments. "Also, writes Wolf, "there is Truth Social's anemic user count: 494,000 monthly active U.S. users."

Wolf writes, "We are already in the midst of a real-world experiment on the concept of a social media platform where supposedly any speech goes." The results, unsurprisingly, have been disastrous. Who knew that advertisers have little interest in associating their brands with toxic cesspools of hate speech and misinformation?

While Trump's MAGA cultists may eagerly throw their money at Truth Social as a show of fealty to their orange Jesus, savvy investors will likely attempt to capitalize on early gains before the inevitable crash. Wolf: "If you want to talk about a bloodbath, at least financially speaking, give it a little time: we're about to see one."

See also: Truth Social "reports $31.6 mln net loss since launch"— and is suing 20 news sites who reported that it lost more