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Investors are reacting with shock to the rather meager revenue figures of
The figure: TMTG's revenue last year clocked in at barely
Moreover, the number of regular users is also unclear. The company speaks only of 8.9 million "signups." In any case, that is considerably less than Reddit's daily user base (73 million) and a mere trifle compared to
Also troubling: the net loss came to more than
Game of billions
The stock market reaction: The stock plunged more than 21 percent Monday, closing at
- That does mean the company remains a billion-dollar company, with a market capitalization of
$6.6 billion , down from a peak of more than$10 billion last week. -
By comparison, Reddit is valued at
$7.5 billion . -
Those big swings also logically translate into the paper assets of ex-president and presidential candidate
Donald Trump , who owns 57 percent of the shares. His stake went from more than$6 billion worth at the peak to just under$3.8 billion after Monday's correction. -
Those billions are virtual for now, as Trump is not allowed to sell or borrow against any of his shares for six months, according to the agreements. The ex-president, the narrow favorite for the
White House according to the latest polls, can put the money to good use for his numerous lawsuits.
Conclusion: All indications are that TMTG was severely overvalued, especially based on the usual standards used for social media companies. Truth Social doesn't even play in the category of niche player Reddit, let alone in the league of giants like Instagram or TikTok.
© The Content Exchange, source