Trump's Failing Truth Social Was Doing Much Better Under Biden

As Elon Musk's Tesla is feeling the hurt, president Donald Trump's Truth Social meme stock is suffering a similar fate.

Not unlike the EV maker's shares, Truth Social's owner Trump Media & Technology Group (TMTG) has wiped out half of its value since Trump was inaugurated. Tesla shares are down 45 percent over the same period.

In fact, Trump's dubious social media scheme was performing far better when former president Joe Biden was still in office, with shares rocketing in early 2024 after merging with a special purpose acquisition company.

The extremely volatile stock has been on a rollercoaster ride since then, periodically tanking before attracting new investors. Last year's presidential election, in particular, saw TMTG's shares spike — only to come crashing back down now that Trump is actually in office.

The volatility highlights just how extremely overvalued the company's stock is. Just last month, TMTG revealed in an earnings report that it had lost a whopping $400 million while only taking in $3.6 million in revenue in 2024.

In other words, the stock's value isn't based on an actual business that's making any money — it's more of a loose indicator of Trump's political fortunes.

Meanwhile, just as analysts were expecting, Trump and other insiders have been enriching themselves through lavish compensation plans. Some high-ranking executives even started dumping their stock last summer, suggesting the scheme wasn't long for this world.

Ever since Trump was sworn in January, the stock has been getting hammered. It's down well over 40 percent year to date, largely in line with fears of a recession brought on by Trump's tariff war causing the entire stock market to plummet.

Behind the scenes at Trump Media, it's not looking much better, with multiple lawsuits and alleged mismanagement adding to the chaos.

In short, the flaming dumpster fire has approached the bottom of the hill and is still smoldering as it's burning through investor funds.

Apart from dubious meme stocks, the president also launched a meme coin in the days leading up to his inauguration, which by early February had wiped out all of the "winnings" of those foolhardy enough to invest. Since Inauguration Day, when it hit an all-time high of $75.35, the coin has lost over 85 percent of its value.

But Trump and the team behind the crypto project had the last laugh, netting $350 million through the sale of tokens and fees, as the Financial Times reported last week.

More on Truth Social: Trump's Failing Social Network, Truth Social, Lost an Absolutely Staggering Amount of Money Last Year