 |
| Photo Credit: Getty. |
Stocks of Digital World Acquisition, the company behind former President Donald Trump’s Truth Social online platform tanked 72 percent leading to severe loses to the tune of $6.5 million. The loses were recorded in the first half of 2022 as the company is warning of Trump’s potential “adverse” impact on business, Newsweek reports.
When did Trump launch Truth Social and why?
In February 2022 Trump launched his Truth Social after he was kicked out of major social
networking sites like Twitter and Facebook for repeatedly violating their terms
of use. The former president used Facebook and Twitter to spread his unfounded
allegations of widespread voter fraud following his defeat in the 2020
elections.
Several conservatives
as well as thousands of Trump supporters are using the platform. Trump has been
using the platform in recent times to make rebuttals for instance about the
purpose of FBI at his Mar-a-Lago home and other political statements.
So what is happening to Digital World Acquisition Stocks over Truth Social?
In its
latest filings with the U.S. Securities and Exchange Commission (SEC), the
company outlined its latest potential setbacks, according to Newsweek. The
company lost a net of $6,225,776 from January through June 2022.
Digital
World Acquisition’s stock has reportedly plummeted in recent months. In March,
the company’s stock prices peaked at $97.54 a share, but that has declined to
$27.52 per share as of Friday which amounts to about 72 percent drop in the company’s
stock prices, according to Newsweek
The company
warned about how Trump could further damage its operation going forward in its
filings with SEC.
"If
President Trump becomes less popular or there are further controversies that
damage his credibility or the desire of people to use a platform associated
with him, and from which he will derive financial benefit, TMTG's results of
operations, as well as the outcome of the proposed Business combination, could
be adversely affected," the filing reads, Newsweek reported.
Responding
to the plunge, Trump disputed the financial mess of his platform, accusing what
he called “The Fake News Media” in a Truth Social post Saturday of being “devastated by how well TRUTH is
doing so, quite on cue, they are working overtime to criticize and demean it,”
according to Newsweek.
“Actually,
many of the big guns in Washington, D.C., are fighting to stop the TRUTH but,
they won't be successful. They are going after the outside financial company,
and virtually anybody that walks and breaths, but that won't do it. They said
it is doing worse since the Raid, but actually it is doing MUCH better, up more
than 550%. We all love TRUTH!!!" he wrote.
But it
appears the financial woes of Truth Social are not over. On Thursday, the U.S.
Patent and Trademark Office declined Trump’s application to trademark the name “Truth
Social” on grounds that two other companies already use the same wording, Axios
reported.
The company
is also facing an investigation into whether it and Trump negotiated before
going public, which could constitute a crime, according to Axios.
Downloads of
Truth Social soared in early August after FBI agents raided Trump’s Mar-a-Lago
home in bid to remove “top secret” and other classified documents which the
former president improperly kept at his home in several locations.