The shares of Truth Social were listed in 2024 and the price quickly rose from the $17 dollar issue price to about $50. The share price was range bound for nearly a year, when it eventually faced reality and started to fall, as all the vaunted management promises came to nothing. The truth is that quarterly earnings while not in freefall, are only above $800k, the management costs do not justify the share performance, which has been consistently negative since it was listed two years ago.
As of June 30th the share price stands just below $7.50 a share, market cap has collapsed to around $2 billion (still a lot if you consider that the operating cash flow is negative). My guess is that over the next year the price will continue to fall, until it is below $1.00 and joins the pink sheet.
Another company did something similar more than a decade ago, it was called the Grill Cheese Truck Company, which at one point had a market value in excess of $100 million, and owned and operated 11 grill cheese food trucks in four US markets, and generated an operating loss its entire existence. It ended in chapter 7, and investors lost everything – the trucks were not worth very much.
As for Truth social I would expect a similar outcome, my guess would be that the wheels will come off sometime in 2027, after the mid term, and when the management realizes that this is a sinking ship. For what it's worth, during the last quarter intangible assets went from $25 million to $1.1 billion… What did the company do to justify such a massive increase?
Anyway, an amusing update, if nothing else I am relatively certain that no one who reads this blog owns any of these shares?
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