Warning, I will be hating a lot on our former President, Donald Trump in this article, so if you are Trump man, I would avoid reading this, as I will likely repeatedly insult former President Trump.

Donald Trump is a bit of a controversial figure. If you are a human being on the planet, you are at least vaguely aware of him. Many in America and the world detest him. They believe he is a pox. A disgusting, fool of a man whose inevitable doom will be especially sweet. Others believe he is a messiah of sorts, brought about to heal America and lead it into the promised land. I am more of the first opinion than the latter, and in general, I find Donald Trump to be reprehensible, but I do try (and often fail) to keep emotions out of my money, so when I saw Donald Trump was taking his company public via a SPAC, I decided to check it out.

            Truth Social is a social media app that Donald Trump created after he was booted off most social media apps following his defeat in the 2020 election. Truth Social is almost solely used by Trump supporters, and even then, only the most rabid. You have heard of Truth Social because any time a news company wants to mention something that ole’ Don said, they must mention where he said it, and that place where he often spouts his dribble is Truth Social. Before we even get to what most people have been talking about today, we need to mention a couple big flaws in Truth Social.

            First, social media companies get most of their revenue from advertisements. Major corporations only buy ads from a narrow selection of social media companies because they want to reach a potential consumer base without having to spend much money. They do not want their name associated with controversy. For example, I forget what Elon said late last year, but it made Apple and Disney mad, and they pulled their ad spend on Twitter because they did not want their name associated with the company. Donald Trump is all controversy.

            In his entire time in the spotlight, Donald Trump has only ever attracted ire, or more recently, love. Major corporations are not going to poor tens of millions into Truth Social, because there is nothing to gain. If Xbox pays Truth Social $50 million dollars to advertise everywhere on their site, all they will receive are, at most, 600,000 users, a lot of controversy, and a few people would be fired. If you compare that to an alternative for advertising, YouTube, Xbox could pay YouTube x amount of money to reach 122 million daily users, avoid controversy, and assuredly, get more bang for their buck. Social media companies make money from ads, and nobody is going to buy ads from Donald Trump.

            The second major problem with Truth Social is competition. I already touched on this a bit in the first point, but there are already numerous established social media companies. Reddit is widely known to be a poor social media company to buy stock in, and they have more than 122x daily active users than Truth, and those users are hyper-dedicated to the site. Even Threads, the Meta sponsored Twitter competition has 10 million daily active users compared to Truth’s 600,000, and Threads has been around for a shorter period. And these are the minor players in social media. We have not even talked about the big boys like Instagram, YouTube, TikTok, etc. Frankly, there is too much competition.

            The third problem, and possibly the biggest, is that the company sucks. The company only went public because it had to. According to their filing with the SEC, the company would have gone bankrupt without this deal, as they had burned through all their funding in the previous year. The company has only brought in $5.6 million in revenue since 2021 and posted a net loss of $60 million last year. How in the world do you only make $5.6 million dollars in over three years. That is pitiful.

Meta makes $175 million dollars in profit per minute.

Basically, Truth Social is a tiny social media company. Truth has been run poorly so far, as seen in their $5.6 million in revenue in three plus years, they will never grow past the point they are at right now, and the only reason they even exist as a company, Donald Trump, is about to dump all his shares to pay for his legal fees.

Now, I know I said that I like to keep my emotions out of money, and that was a lie. You know that was a lie, and I know that was a lie. There was no way I would ever invest in a traitor, and neither should you.