Donald Trump, the presumed Republican nominee, is facing more difficulties after seeing a sharp increase in his wealth since last month due to the March IPO of his firm, Trump Media & Technology Group.
Despite the former president’s venture’s modest earnings, his interest in his public firm is currently valued at $6 billion.
Concerns about the company’s survival may also be raised by recent statistics made public by the intelligence firm Similarweb.
CNN claimed that there was a significant decline of 19% in the average daily user base of Trump’s social media site Truth Social in April compared to the same month last year.
Truth Social is owned by Trump Media & Technology Group.
The user base decreased by 4% in the previous month.
The drop occurs when the billionaire is embroiled in his legal battle over the hush money he sent to adult film star Stormy Daniels in 2016.
According to the publication, Matthew Kennedy, a senior strategist at Renaissance Capital, stated that user growth is the cornerstone of any social media firm. These businesses generate revenue by growing their user base and then monetizing it.
The company stated earlier this year that “TMTG’s business prospects would be adversely affected if it fails to attract a sufficient user base.”
The politicized media, according to Trump Media spokesperson Shannon Devine, “cherry picks some unreliable estimate to downplay our success.” Truth Social, on the other hand, has millions of subscribers, she said, criticizing the media.
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