The main shareholder is gone, a top manager allegedly resigned after an internal complaint: The media group Trump Media and Technology Group, which maintains Donald Trump’s Truth Social platform, is making bad headlines in the election campaign. Scott Olson/Getty Images
A senior executive at Trump Media and Technology Group has resigned following an internal complaint, according to a media report.
The company operates Donald Trump’s social network Truth Social.
Despite other serious events, most investors remain loyal to the Trump company’s shares.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Donald Trump’s social media company is apparently in trouble. This week, the deputy executive director of Trump Media and Technology Group, which runs Trump’s Truth Social platform, submitted his resignation. Spicy: The process could be related to a whistleblower complaint, such as one Message the portal “Propublica” claims.
A few days earlier, one of the company’s main shareholders announced that he had sold his share in the company.
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Different stock market parameters apply to Trump’s media group
Investors in most companies would jump ship after such news. And in fact, shares of Trump Media and Technology Group, which trades as DJT on the Nasdaq, fell about one percent on Friday morning. But then they recovered again and rose by around three percent by midday.
So if you’re expecting the former president and current White House candidate’s company to crash in the near future, you’re wrong. You then imagine the Trump Media and Technology Group as a typical company. Not as a meme stock that primarily gets attention on social media.
Number of Truth Social accounts: unknown
We know the story: Trump Media and Technology Group runs Truth Social — but the network is still in its infancy at best. It has little revenue, and what little revenue it does record is proving to be declining.
In the first six months of this year, the company recorded net sales of $1.6 million (1.45 million euros), compared to $2.3 million (two million euros) in the same period in 2023.
We don’t know how many users Truth Social has because the company doesn’t disclose that number. Apparently it doesn’t even know this number itself. The company’s main advantage was once its exclusivity as the only platform on which Trump posted social media messages.
Trump posts on X again
But that’s no longer the case as he’s back to posting on the social network formerly known as Twitter. Nevertheless, Trump Media is still worth the equivalent of around 2.7 billion euros.
DJT is a meme stock. It is traded independently of financial considerations. The share price has fallen for most of the year. Many believe this is due to fears that Trump himself may sell stocks or that his chances of winning next month’s election have diminished. Of course, both could certainly apply.
But it remains nearly impossible to explain why DJT rises or falls on any given day: shares have risen about 11 percent since Monday.
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In any case, Propublica’s report is revealing as it links the recent resignations of the company’s chief operating officer and chief product officer to an internal complaint. This accuses CEO Devin Nunes of misconduct.
Business Insider has reached out to Trump Media for comment. They referred to the statement they previously gave to “Propublica”. It said the reporting was the “fifth consecutive piece in an increasingly absurd campaign by Propublica, probably on behalf of political interest groups, to TMTG [Trump Media and Technology Group; Anm. d. Red.] with false and defamatory accusations and vague insinuations.”
Business Insider also reached out to Andrew Northwall, former COO of Trump Media, for comment. In a post on Truth Social Northwall said he has stepped down and is looking forward to focusing more on his family and returning to his entrepreneurial journey, where his heart truly lies.
Read the original article Business Insider.
