IPO - Is Donald Trump's Truth Social's Public Debut Worth The Hype? Expert Urges Caution | Benzinga
Investors eager to support former President Donald Trump’s social media venture, Truth Social, may face disappointment, according to Helaine Olen, author and columnist.
What Happened: Truth Social went public today, following its approved merger with the little-known publicly traded Digital World Acquisition Corp. (DWAC). The merged entity will trade under the name and stock symbol — DJT — of Trump’s media company, Trump Media & Technology Group Corp. (NASDAQ:DJT).
Despite the prospect of the new company being valued at approximately $5 billion, MSNBC’s Olen advises caution. She highlights Trump’s history of financial failures and the modest user base of Truth Social compared to its rivals.
Olen points out that Truth Social’s revenue is meager, and its user base is a mere fraction of Twitter’s estimated 500 million. The public offering via a special purpose acquisition company (SPAC) also raises eyebrows due to the lack of financial transparency required compared to traditional IPOs.
Despite these warnings, Trump’s ardent supporters, who have previously turned Digital World Acquisition into a meme stock, are expected to ...