So, while we’ve been watching social media companyTruth Social (NASDAQ:DJT) pretty closely over the last several weeks, we’ve often been left stymied as to why its share price moves in the direction it does. Announcements that should be good news have little effect, while the price will race up or down on virtually nothing happening. Today, Truth Social rolled out its earnings, and despite a hefty loss, share prices rose fractionally in the closing minutes of Wednesday’s trading.
The centerpiece of the report featured a loss of $327.6 million for the first quarter. That is significantly more than the losses posted this time last year when it lost just $210,300. Those massive losses were essentially connected to Truth Social’s initial public offering.
But perhaps worse was the revelation that Truth Social pulled in just $770,500 worth of revenue, which is the second time in a row that it couldn’t even bring in $1 million. That prompted amazed notes from analysts, like Renaissance Capital senior IPO market strategist Matthew Kennedy, who declared: “I can’t emphasize enough how unusual it is for a company with this little revenue to have this high a valuation.”
Venting Users
Meanwhile, new reports suggest that one of Truth Social’s biggest problems is keeping users in the fold. A study from GWS Magnify found that 22% of users had used the app in the last seven days. Meanwhile, nearly half, 49%, of users hadn’t used it in the last 61 days. Both compare poorly to X, formerly Twitter, where 57% of users have used the app in the last seven days, and only 22% haven’t touched it in 61 days.
Is DJT Stock a Good Buy Right Now?
Turning to Wall Street, there are still no analysts covering DJT stock, so instead, we turn to the last five days of trading. And indeed, those last five days have not been kind, as shares are down 13.84% during the period in question. Indeed, a major reversal hit on Tuesday that sent shares into a slump.
Is It Wise to Allocate $1,000 Toward DJT Stock Right Now?
Before you hurry to invest in DJT, think about the following:
TipRanks’ team has built the Top Stocks Portfolio for investors, and DJT is not included. Our portfolio highlights companies that have been hand-picked for their potential to deliver significant gains in the years ahead.
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