Hi everyone,
Saw this news article today and thought that it might be interesting for people in this class!
If anyone remembers, former president Donald Trump launched a social media called “Truth Social” back in 2021. It has been called a “twitter clone” that is a alt-tech social media platform. As of today, it has around 5 million users but a very disappointing financial performance since its has failed to obtain any advertisers.
But just yesterday, it was announced that Truth Social merged with a shell company giving the former president a $3 billion dollar cash infusion (probably will go towards his legal fees). It was also announced that shares of the newly combined company will begin publicly trading on Monday.
Will people buy his stock?
Weirdly enough, it seems like predictions are that the market will respond well to the stock. Not because people see potential growth for the company….. but to support Trump. Its likely that Trump supporters will see the stock as appealing for political reasons more than financial. It’s definitely weird to think that people will buy stock purely for political reasons…
It’ll be interesting to see what happens on Monday.
Thanks for reading!
Article Link: https://www.semafor.com/article/03/22/2024/trumps-truth-social-merger-could-provide-him-a-much-needed-cash-infusion
