Donald Trump’s niece spells doom for Truth Social, ‘it’s destined for failure’, experts agree

Donald Trump’s niece and a vocal critic of her uncle, Mary Trump has made an ominous prediction for her uncle’s social media venture Truth Social. She claims it is “destined for failure.” She isn’t an astrologer but a sane observer of news. Many who have read Truth Social’s financials will agree, the company is bleeding.

Truth Social generated just over $4.1 million in revenue and incurred $58.2 million losses in costs(REUTERS)

Day after Trump’s net worth plummeted by $1bn, thanks to the losses posted by the company, Mary Trump—a writer and outspoken critic of her uncle—pointed out the social media platform’s failings.

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“There is little hope that Donald will ever be able to turn Truth Social into a successful social media platform,” she wrote.

“From technical glitches and user interface issues to a lack of unique content, Truth Social has struggled to provide a compelling alternative to established social media platforms. It’s half a million users are also shrinking, not growing (down 51% year-over-year). Even Threads, Mark Zuckerberg’s new social media platform, ‘has more than 10 times as many users as Truth Social.’

“The culprit? Donald had to tell the truth about his failing company. In compulsory SEC filings released today, the Trump Media & Technology Group was forced to disclose that it lost more than $58 million and barely generated any revenue in 2023.

“The company also admitted that the ‘operating losses’ would continue ‘for the foreseeable future.’ Just a week ago, valuations of the company reached as high as $10 billion.

Mary Trump even warned, the stock has become “extremely volatile and a very risky investment for anybody who buys it.”

Mary’ comments have been echoed by many financial market expert. Josh Marshall posted a long thread on X, claiming “So even though Truth Social losing a ton of money and only having very meager revenue makes it seem like a joke.”

What makes it questionable is Trump’s reluctance to showcase the audience engagement numbers of his social media platform. Active user accounts including monthly and daily active users are the biggest indicator of a digital entity’s performance. But the company’s SEC filing claims that it may never collect, monitor or report those numbers. So it won’t release any information on how many people are actually using Truth Social.

“Business bleeding money like crazy. But if this two year old social network were in the process of building a robust user base which showed strong signs of on-going growth that might not matter,” writes Josh Marshall.

“This company has zero actual value. The best case for its value is that they haven’t actually tried to build the user base. So it’s as tho it was still a prospectus with an amazing strategy. But in fact it’s been around for two years and has an INSANE amount of publicity behind it. Again, this company has no value. Or I guess better to say that whatever value it may have is premised on the say so of Donald Trump.”

The SEC filing revealed that the company, in which Trump holds nearly a 60 percent stake, generated just over $4.1 million in revenue. However, it incurred $58.2 million in costs during its latest operating year, resulting in an operating loss of $15.96 million and approximately $40 million in interest.

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