New trouble is brewing for the Republican presumptive nominee Donald Trump even after a massive rise in his net worth since last month as his company Trump Media & Technology Group went public in March.
The former president’s stake in his public company is now worth $6 billion, despite his venture’s low revenue.
Recent data released by an intelligence company Similarweb may also raise an alarm regarding the future of the company.
It suggested that Trump’s social media platform Truth Social has witnessed a massive drop of 19% of the average daily user base in April on yearly basis, reported CNN.
Trump Media & Technology Group is the company that owns Truth Social.
In the last month, the user base plunged 4% month over month.
The decrease comes as the business mogul has been enmeshed in his legal trial concerning hush money he paid to an adult film star Stormy Daniels in 2016.
Matthew Kennedy, a senior initial public offering strategist at Renaissance Capital, was quoted by the outlet as saying: “User growth is foundational to any social media startup. It is how these companies make money: Grow users and monetise them, in that order.”
“Failure to attract a sufficient user base would adversely affect TMTG’s business prospects,” the firm said earlier this year.
On the other hand, Trump Media spokesperson Shannon Devine criticised the media and claimed that Truth Social has amassed millions of users, adding “the politicised media cherry pick some unreliable estimate to downplay our success.”
