Recently, former US President Trump announced that he would launch his own social media platform called Truth Social. This immediately aroused widespread market attention. The stock price of the blank-check company Digital World Acquisition Corp., which will take Trump Media & Technology Group public, surged more than 350% after the news. Many investors are paying close attention to the investment value of this social platform. This article will analyze whether it is worthwhile to invest in Trump’s truth social app from the perspectives of business model, market prospect, potential risks and existing competitors.
Trump’s truth social app adopts the freemium business model to achieve profitability
The truth social app will provide free basic services to users at the initial stage, and realize profitability through membership services and advertising revenue in the later stage. On the one hand, it will launch VIP membership services such as advanced account functions and exclusive content. On the other hand, it will introduce appropriate advertising embedding. Although social media platforms often adopt similar commercial modes, whether Trump’s personal attributes can attract enough users and advertising sponsorship is still unknown.
The truth social app has potential growth opportunities but faces fierce competition
Trump’s truth social app targets the underserved conservative user group in the current market, which has certain growth potential. However, major technology giants such as Facebook and Twitter have monopolized most social media users. Whether the truth social app can take a share depends on the actual experience. At the same time, the app may also face ideological censorship and obstruction from its competitors.
Investing in the truth social app involves high risks
As a new concept stock, the truth social app stock price has risen sharply recently, and its valuations may have seriously deviated from the fundamentals. In addition, the app has not yet officially launched, and there are many uncertainties about business models, growth prospects, and profit models. Investors need to be cautious when investing in order to avoid being dumped.
The core competitiveness of the truth social app remains to be tested
Whether users, content creators, advertisers and others are willing to join the truth social app platform is crucial to its success. This depends largely on whether the platform can provide a good user experience, build an effective content ecology and establish its core competitiveness. However, these key elements need to be verified after the official launch of the app.
In summary, the commercial value of investing in Trump’s truth social app remains to be tested. The market has excessively sought after relevant stocks, and valuations have seriously deviated from reasonable intervals. Investors are strongly advised to wait and see after listing before considering increasing their holdings.