Truth Social (DJT), a social media platform linked to Donald Trump, saw its stock hit an all-time low. Several executives started selling their shares, which caused the stock to drop even further, signaling growing uncertainty about the company’s future.

A New Record Low

On Tuesday, shares dropped below $17.50, marking a significant low since the company’s public debut. This sharp decline has left many investors wondering whether Trump himself may follow suit and sell his shares.

Trump’s Critical Role

Trump owns 114 million shares, about 60% of the company’s stock. If he chooses to sell once his SEC lockup period ends, it could cause further instability and possibly sink the company’s future entirely.

Executives Jump Ship

Key executives, including CEO Devin Nunes, have sold millions of dollars’ worth of shares. This mass exodus at the top has compounded the company’s challenges, raising red flags about its leadership and stability.

Financial Struggles

Truth Social has been losing money rapidly. In the last quarter alone, the company reported a net loss of $16.4 million, despite generating only $4.1 million in revenue for 2023, raising questions about its sustainability.

Overvaluation Concerns

Despite its poor financial performance, the company is still valued at billions of dollars, a figure many analysts consider highly inflated. This could be another sign of trouble for investors who initially bought into the hype.

Trump’s Return to X (formerly Twitter)

As Trump returns to Twitter (now called X), it casts further doubt on Truth Social’s future. The platform was originally meant as an alternative to Twitter, but its relevance may be fading as Trump shifts focus.

A Possible Cash Grab

Some critics argue that Truth Social was always more of a cash grab than a serious platform. Trump could potentially walk away with over $2 billion if he sells his shares, leaving others to deal with the fallout.

Future Uncertainty

With key executives leaving and Trump potentially selling his shares, Truth Social’s future is looking grim. Many fear the company may not survive much longer as a viable platform.

The Bigger Picture

Truth Social’s struggles may reflect broader challenges faced by businesses tied closely to political figures. While it initially gained attention, its financial and operational failures are now becoming impossible to ignore.