Truth Social, created by former US President Donald Trump, has generated huge interest among investors since its announcement. As a new social media platform positioning itself as a bastion of free speech, Truth Social provides an intriguing investment opportunity. However, as a private company currently not trading publicly, investing in Truth Social requires following special procedures. This article will explore key steps for investors to gain exposure to this burgeoning platform.
Understand Trump’s role and goals for Truth Social
As founder, Donald Trump holds a major stake in Truth Social and provides the platform’s high profile. He has touted Truth Social as an alternative to Twitter after being banned from the platform while President. With Trump positioning Truth Social as a free speech platform, its success will likely depend heavily on his continued involvement and ability to attract followers.
Evaluate Digital World Acquisition Corp as a SPAC route
For public market exposure to Truth Social ahead of an IPO, investors can purchase shares of Digital World Acquisition Corp (NASDAQ: DWAC). This special purpose acquisition company (SPAC) plans to merge with Trump Media and Technology Group, which operates Truth Social. DWAC shares spiked after the merger announcement but have been volatile since, making thorough due diligence important.
Research Truth Social’s growth potential
Assessing Truth Social’s user growth and engagement metrics will help determine its investment prospects. Competitors like Twitter and other alternative social platforms provide benchmarks. Examining the broader market for a free speech social network also gives context on Truth Social’s addressable audience and upside.
Monitor progress toward a direct listing
Trump Media and Technology Group has outlined plans to eventually take Truth Social public through a direct listing. This path would allow buying shares directly. Investors should follow news on hiring plans, platform development, and financial preparations to gauge the plausibility of this liquidity event for shareholders.
Investing in Truth Social requires evaluating Trump’s leadership, the SPAC deal path, competitive standing, and direct listing potential. Monitoring user growth and financials allows assessing the platform’s investment outlook.