In a surprising turn of events, Donald Trump recently reposted an artificial intelligence-generated image that purportedly showed Taylor Swift endorsing him for president. The image, which was shared on his social media platform Truth Social, sparked controversy and speculation about whether the pop star had actually endorsed Trump. This move comes as Trump’s re-election bid for the White House faces challenges and his social media platform’s parent company, Trump Media & Technology Group, sees its stock prices plummet.
The stock prices for Trump Media & Technology Group hit a new low on the first day of the Democratic National Convention, closing at $22.24. This marks a 3.56% decrease from the previous close and the lowest closing price since the company went public in March. The downward trend in stock prices has been ongoing since mid-July, with the company reporting significant losses and minimal revenue in the second financial quarter. This decline coincides with the struggles of the Trump campaign against the Democrats‘ new candidate, Vice President Kamala Harris.
Trump Media & Technology Group has often been compared to a meme stock due to its volatile nature and overvaluation. The company was founded in 2021 after Trump was banned from other social media platforms following the January 6 riot at the U.S. Capitol. It went public through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company. Despite a strong debut, the stock prices have fluctuated wildly, influenced by retail investors and the unpredictable news cycle surrounding Trump.
Experts have raised concerns about the overvaluation of Trump Media & Technology Group compared to other social media companies. The company reported a net loss of $327.6 million in the first quarter of 2024 and generated only $770,500 in revenue. In the second financial quarter, the losses exceeded $16 million while revenue remained below $1 million. Regulatory filings indicate that the company has been operating at a loss since 2023, with revenue of approximately $4 million and losses exceeding $58 million.
The controversy surrounding the AI-generated image of Taylor Swift endorsing Trump adds another layer of complexity to the already tumultuous landscape of Trump’s re-election campaign and the performance of his social media platform. As the stock prices continue to decline and the company faces financial challenges, the future of Trump Media & Technology Group remains uncertain. The intersection of politics, technology, and celebrity endorsements has created a compelling narrative that will undoubtedly continue to unfold in the coming months.