Trump Media Stock Is Down; What's Gone Wrong at Truth Social's Parent

Key Points:

• Trump Media and Technology Group (TMTG), which went public via SPAC in spring 2024, has seen its stock plunge nearly 90% from peak levels and is down 30% in 2025, currently trading around $9 with a $2.5 billion market cap despite minimal revenue and massive losses.
• The company's flagship product, Truth Social, has failed to gain significant user traction or revenue, especially as former bans on President Trump have been lifted and he can post freely on other platforms like X (formerly Twitter).
• TMTG's attempts to diversify into bitcoin trusts, cryptocurrency tokens, ETFs, and a planned merger with nuclear fusion company TAE Technologies have so far been underwhelming or speculative, with key deals pending and technology unproven at scale.
• Management changes, including the departure of CEO Devin Nunes and appointment of interim CEO Kevin McGurn, reflect diminished expectations for TMTG as a major social media competitor, with investors and analysts generally viewing it as a failed "Trump trade."
• While some loyal shareholders remain hopeful, short sellers have profited from the stock's decline, with short interest reaching high levels; overall, TMTG serves as a cautionary example that not all investments tied to Trump yield returns.