Truth Social Shares Surge Following Reported Assassination Attempt on Trump

Shares of Truth Social, the social media platform founded by former President Donald Trump, surged approximately 30% in early trading on Monday, reaching $40 per share. This increase follows a rally triggered by an assassination attempt on Trump two days prior. Despite this rise, the stock remains significantly lower than its peak of around $62. Analysts suggest that the stock's performance reflects the sentiments of Trump's supporters, with some viewing the situation as critical and choosing to invest heavily. However, the stock's trajectory has been volatile, with a notable decline of nearly 70% over the past two weeks, dropping to about $23. This fluctuation aligns with the characteristics of "meme stocks," which attract investors based more on ideological beliefs than on financial fundamentals. Truth Social reported a modest revenue of approximately $4 million last year, a stark contrast to the nearly $135 billion generated by Meta, the parent company of Instagram. The recent stock performance may provide Truth Social with an opportunity to reinvest and enhance its services, potentially attracting more users as Trump continues to capture public attention. Analyst Tyler Richey noted that while there are prospects for growth, they remain uncertain. A significant increase in user engagement could be beneficial, but it might also just represent a temporary spike in optimism. Experts caution that Truth Social's lack of strong financial backing makes it susceptible to volatility, reacting sharply to both positive and negative news. As the platform navigates these challenges, its future remains uncertain amid the fluctuating sentiments of its investor base.