Trump's Truth Social Goes Public With Lofty $8 Billion Valuation Despite Modest User Base and Revenue

Truth Social, Trump's social media platform, went public this week under the ticker DJT. Its parent company is valued at $8 billion despite little revenue or earnings.

Analyst Michael Pachter calls DJT a "meme stock that puts all other meme stocks to shame" due to its extremely high valuation compared to fundamentals.

Truth Social brought in only $3.4 million revenue in 2022 and lost $49 million. It has just 5 million monthly users compared to hundreds of millions for platforms like Twitter.

The platform appeals mainly to Trump supporters rather than a broader audience. Its maximum addressable market is only 75 million Trump fans.

Unlike other unprofitable social media firms, Truth Social's small user base and niche appeal don't justify its inflated stock price. Pachter believes it needs 200 million users to warrant current valuation.