It’s hard to imagine a day in which social media company Truth Social (NASDAQ:DJT) isn’t fighting back against something. And today was no different, as it took on short-sellers. But there was also some extra word about its potential streaming service to consider. However, it didn’t help matters much with investors, as the pugnacious stock found itself down over 5% in the closing minutes of Monday’s trading session.
Truth Social is continuing to wage its war against short sellers, particularly illegal short sellers, encouraging “criminal prosecution” for those who engage in the practice, according to Just the News.
However, what probably spooked investors was that Truth Social recently issued a warning in a regulatory filing, which stated that the X platform could draw subscribers away due to Elon Musk‘s ongoing commitment to protecting free speech on the platform.
Admittedly, that’s one of the big draws of Truth Social right now, and a competing platform with vastly better name recognition is likely to prove a challenge to the less-established platform.
Meanwhile, Streaming
Further, a little more word emerged on the planned streaming platform. Truth Social declared streaming the “beachhead” that will ultimately support the platform. We didn’t get much more word about it than that, however, as just what will be on the platform remains unclear. Still, some don’t put much stock in the Truth Social streaming platform, as Public Ventures LLC’s Lou Basenase called it “…rearranging deck chairs on the Titanic.”
Basenase also pointed out that while Trump has around six or seven million followers on Truth Social, he has over 10 times that number on X. The platform itself is inherently limited, and Basenase doesn’t see streaming as a way to drive outside interest.
Is DJT Stock a Good Buy Right Now?
There are still no analysts covering DJT stock. Therefore, we turn to the last five days of trading, which were not kind to Truth Social, as shares are down 14.36% in that interval. Shares were briefly on the rise in the early going but quickly lost ground. Meanwhile, modest rallies stepped in on two occasions after the first drop, but neither had legs sufficient to pull the stock out of its doldrums.
