Truth Social is an “alt-tech” social media platform created by the Trump Media & Technology Group (TMTG), founded in October 2021 by former US President Donald Trump. The platform, which has been called a “Twitter clone”, competes with Parler, Gab, and Mastodon in providing an alternative to Twitter and Facebook, and is often marketed at conservative audiences.
These platforms are seen as an alternative (hence “alt-tech”) to mainstream social media apps, which some conservatives believe discriminate against their views and limit free expression. This perception has been particularly heightened following the banning of prominent conservative figures, including former President Donald Trump.
Furthermore, these platforms frequently embrace a libertarian stance when it comes to content moderation, attracting users who crave unrestricted dialogue. However, they also risk becoming echo chambers for conservative political discourse, reinforcing entrenched convictions and ideologies. Despite these dynamics, it’s essential to recognize that these emerging social media apps have yet to achieve the widespread success enjoyed by established giants like Facebook and Twitter. This discrepancy partly stems from the fact that conservative politicians and causes already wield substantial influence on the existing platforms.
Whilst platforms like Parler doubled its membership from 5 million to 10 million users in November 2020 alone, such growth spurts appear to be a fad, and for example dwarf Twitter’s 330 million monthly active users. Such phenomena have also been witnessed at Truth Social:
Figure A
Source: William John Analytics, AppMagic
The platform initially experienced a large surge in users back in Q1 of 2022, only to fall back to an average of 81,848 user downloads per month since October 2022.
Despite this, the company was considered a suitable merger target for SPAC (Special Purpose Acquisition Company) Digital World Acquisition Corp., a publicly traded shell company. The merger was valued at $5.7 billion and the stock price of the combined company (Trump Media & Technology Group Corp.) immediately surged in the days following its debut on March 26th:
Figure B
Source: William John Analytics, Yahoo Finance
From reaching a high of $66.22 on 27th March, the share price has steadily declined since then. In fact, already it is worth a third of what it was, trading at around $22 per share.
So what is in store for the company moving forwards? Looking ahead, the future of Truth Social may hinge on their ability to maintain user engagement and growth. While the initial surge in user downloads indicates a potential market for these platforms, the subsequent decline suggests that sustaining this interest over the long term may be challenging.
Moreover, the financial viability of these platforms is another crucial factor. The sharp decline in the share price of Trump Media & Technology Group Corp. post-merger indicates investor scepticism about the company’s prospects. The company will need to demonstrate a clear path to profitability to regain investor confidence.
While alt-tech platforms like Truth Social offer an alternative space for conservative audiences, their success will depend on their ability to sustain user engagement, innovate, and demonstrate financial viability. They represent a fascinating development in the social media landscape, reflecting the ongoing debates about free speech, content moderation, and political bias in the digital age. However, whether they can truly challenge the dominance of established social media giants remains to be seen.
Any opinions expressed in this document are those of William John and are provided for information only. E&OE
