Business
Column: Trump's Truth Social stock is circling the drain
Hiding in plain sight in the first annual report issued by the parent company of Donald Trump’s Truth Social platform was a statement of inescapable, well, truth.
Issued, perhaps appropriately, on April 1 by Trump Media and Technology Group, the report said: “The value of TMTG’s brand may diminish if the popularity of President Trump were to suffer.” This was cited as a “risk factor” in holding the company’s stock.
So here we are. Since July 21, when President Joe Biden ended his campaign for reelection and endorsed Vice President Kamala Harris to run against Trump, the stock has been spiraling toward oblivion.
TMTG may lack any meaningful remedy if President Donald J. Trump minimizes his future use of Truth Social.
— Trump Media and Technology Group acknowledges the limits of Donald Trump’s duty to use his own social media platform
From then through Tuesday, shares of the company bearing Trump’s initials (DJT) as its ticker symbol have lost nearly 39% of its value. (The broad stock market as measured by the Standard & Poor’s 500 index has gained almost 2% over the same time span.)
The shares have gained in daily value only five times during that period, and lost ground on 17. The shares closed Tuesday at $21.42, down 82 cents or 3.71%, following a slide of 3.56% the day before.
In the context of the grand sweep of DJT’s history as a publicly traded company, that’s not so remarkable. Measured from its closing price of $57.99 on March 26, when it went public, the stock is down about 63%. Measured from its peak of $79.38, which it reached that day before pulling back, the loss is 73%. Choose which of these calculations you wish; either one fits the dictionary definition of “ugly.”
It’s certainly possible that DJT will have recovered some or all of its daily decline by the end of Tuesday’s trading, and even possible that it will emerge from the longer-term schneid in which it currently seems imprisoned. The stock’s volatility has made GameStop look like a sober, stable financial asset.
That said, however, the headwinds are building — not that they were ever any secret.
The principal headwind, of course, is the one telegraphed in that annual report: Trump himself. Since Biden’s withdrawal upended the presidential race and brought Kamala Harris to the fore, Trump’s prospects for victory in the November election have distinctly faded.
In parallel, Trump’s rhetoric and behavior on the stump have become more unhinged and febrile. His standing among the MAGA faithful may have remained solid, but his appeal to independent voters appears to have shrunk — it certainly hasn’t been enhanced. Since DJT is seen as a proxy for his electoral campaign, its slide in value is unsurprising.
But other counterweights have become more significant. One is the question of what Trump intends to do with his own shares in the company, which came to 59.9% of the total shares as of mid-July, according to its financial disclosures. Trump will be entitled to sell any or all of those shares starting in mid-September, when a six-month lockup period expires.
Any indication that Trump is moving to liquidate his exposure to DJT would almost certainly crater the shares’ price; anticipation that he is plotting to leave his outside investors in the lurch, as he has done to investors, partners and customers in other ventures, may account for some of the shares’ weakness.
Trump owns so much of the company that he might be able to realize $1 billion or more via stock sales before other shareholders have a chance to get out the door without taking a loss.
Trump already has shown that he doesn’t take his responsibility to support Truth Social very seriously. He established the platform as a branded alternative to Twitter (now X) after he was thrown off Twitter following the Jan. 6 insurrection. But there is no contractual requirement binding Trump to use Truth Social as his exclusive social media outlet.
One provision of his licensing agreement with DJT requires that he post his personal social media communications on Truth Social six hours before posting them on other platforms.
But his deal with the company allows him to post “politically-related” messages on any platform he chooses — and he has the sole right to determine which posts fall into that category. The company says it “lacks any meaningful remedy” if it disagrees with his designation of posts as “politically-related.”
Elon Musk restored Trump’s account on X in November; he posted there rarely until recently, when his activity picked up. And Trump has posted some tweets on that platform. More notably, on Aug. 12, he Joined Musk for a two-hour rambling, glitch-marred “interview” on X, not Truth Social.
Then there’s the stature of the company as a going concern. It issues all the disclosures required of a public company in the U.S., but anyone reading them would be well advised to open a window first.
Financially speaking, although it still has a market value of $4 billion, the company doesn’t resemble any enterprise that could have been imagined by the value-investing pioneers Benjamin Graham and David Dodd. In its most recent quarterly disclosure, issued Aug. 12, it reported a loss of $344 million on revenue of $1.4 million for the first six months of this year.
No one who has followed Trump’s career with any modicum of attention could be shocked by those figures — or indeed by the fact that the stock has done as well as it has despite them.
Truth Social has been a joke from the inception — a joke on many of the same people still flying “Trump Won” flags from their front yards or wearing red MAGA hats in mixed company. As I wrote prior to the IPO, it was taken public via a special purpose acquisition company, or SPAC, a process that was often employed to circumvent government rules for disclosures to investors. SPACs have fallen out of favor because so many of those deals went bust; Truth Social boasted the highest profile of any of them, but its fate may not be any different.
In that first annual report issued on April Fools Day, the company revealed that it scarcely considered itself a real social media business at all. It said it had no plans to “collect, monitor or report” the traditional metrics used by other social media platforms, such as “average revenue per user, ad impressions and pricing, … monthly and daily active users” — in other words, all the statistics that tell a social media company who is using it, if anyone, and what their participation is worth in dollars and cents.
Having that information would only “divert” the company’s management, the report said, though it wasn’t clear about how management would fashion a strategy for the future if it doesn’t know where it is at present, including just how many users it has.
I wrote in 2021, when the SPAC deal to take Truth Social public was first announced, that it was poised to set a high-water mark for investment schemes. In April, a month after the IPO, I wrote that that Trump might end up laughing all the way to the bank, but his investors would be left with nothing but tears.
We’re well on the way to that glorious moment when I can say, “I told you so.” Or maybe we’re there already.
Business
‘Stranger Things’ finale turns box office downside up pulling in an estimated $25 million
The finale of Netflix’s blockbuster series “Stranger Things” gave movie theaters a much needed jolt, generating an estimated $20 to $25 million at the box office, according to multiple reports.
Matt and Ross Duffer’s supernatural thriller debuted simultaneously on the streaming platform and some 600 cinemas on New Year’s Eve and held encore showings all through New Year’s Day.
Owing to the cast’s contractual terms for residuals, theaters could not charge for tickets. Instead, fans reserved seats for performances directly from theaters, paying for mandatory food and beverage vouchers. AMC and Cinemark Theatres charged $20 for the concession vouchers while Regal Cinemas charged $11 — in homage to the show’s lead character, Eleven, played by Millie Bobby Brown.
AMC Theatres, the world’s largest theater chain, played the finale at 231 of its theaters across the U.S. — which accounted for one-third of all theaters that held screenings over the holiday.
The chain said that more than 753,000 viewers attended a performance at one of its cinemas over two days, bringing in more than $15 million.
Expectations for the theater showing was high.
“Our year ends on a high: Netflix’s Strangers Things series finale to show in many AMC theatres this week. Two days only New Year’s Eve and Jan 1.,” tweeted AMC’s CEO Adam Aron on Dec. 30. “Theatres are packed. Many sellouts but seats still available. How many Stranger Things tickets do you think AMC will sell?”
It was a rare win for the lagging domestic box office.
In 2025, revenue in the U.S. and Canada was expected to reach $8.87 billion, which was marginally better than 2024 and only 20% more than pre-pandemic levels, according to movie data firm Comscore.
With few exceptions, moviegoers have stayed home. As of Dec. 25., only an estimated 760 million tickets were sold, according to media and entertainment data firm EntTelligence, compared with 2024, during which total ticket sales exceeded 800 million.
Business
Tesla dethroned as the world’s top EV maker
Elon Musk’s Tesla is no longer the top electric vehicle seller in the world as demand at home has cooled while competition heated up abroad.
Tesla lost its pole position after reporting 1.64 million deliveries in 2025, roughly 620,000 fewer than Chinese competitor BYD.
Tesla struggled last year amid increasing competition, waning federal support for electric vehicle adoption and brand damage triggered by Musk’s stint in the White House.
Musk is turning his focus toward robotics and autonomous driving technology in an effort to keep Tesla relevant as its EVs lose popularity.
On Friday, the company reported lower than expected delivery numbers for the fourth quarter of 2025, a decline from the previous quarter and a year-over-year decrease of 16%. Tesla delivered 418,227 vehicles in the fourth quarter and produced 434,358.
According to a company-compiled consensus from analysts posted on Tesla’s website in December, the company was projected to deliver nearly 423,000 vehicles in the fourth quarter.
Tesla’s annual deliveries fell roughly 8% last year from 1.79 million in 2024. Its third-quarter deliveries saw a boost as consumers rushed to buy electric vehicles before a $7,500 tax credit expired at the end of September.
“There are so many contributing factors ranging from the lack of evolution and true innovation of Musk’s product to the loss of the EV credits,” said Karl Brauer, an analyst at iSeeCars.com. “Teslas are just starting to look old. You have a bunch of other options, and they all look newer and fresher.”
BYD is making premium electric vehicles at an affordable price point, Brauer said, but steep tariffs on Chinese EVs have effectively prevented the cars from gaining popularity in the U.S.
Other international automakers like South Korea’s Hyundai and Germany’s Volkswagen have been expanding their EV offerings.
In the third quarter last year, the American automaker Ford sold a record number of electric vehicles, bolstered by its popular Mustang Mach-E SUV and F-150 Lightning pickup truck.
In October, Tesla released long-anticipated lower-cost versions of its Model 3 and Model Y in an attempt to attract new customers.
However, analysts and investors were disappointed by the launch, saying the models, which start at $36,990, aren’t affordable enough to entice a new group of consumers to consider going green.
As evidenced by Tesla’s continuing sales decline, the new Model 3 and Model Y have not been huge wins for the company, Brauer said.
“There’s a core Tesla following who will never choose anything else, but that’s not how you grow,” Brauer said.
Tesla lost a swath of customers last year when Musk joined the Trump administration as the head of the so-called Department of Government Efficiency.
Left-leaning Tesla owners, who were originally attracted to the brand for its environmental benefits, became alienated by Musk’s political activity.
Consumers held protests against the brand and some celebrities made a point of selling their Teslas.
Although Musk left the White House, the company sustained significant and lasting reputation damage, experts said.
Investors, however, remain largely optimistic about Tesla’s future.
Shares are up nearly 40% over the last six months and have risen 16% over the past year.
Brauer said investors are clinging to the hope that Musk’s robotaxi business will take off and the ambitious chief executive will succeed in developing humanoid robots and self-driving cars.
The roll-out of Tesla robotaxis in Austin, Texas, last summer was full of glitches, and experts say Tesla has a long way to go to catch up with the autonomous ride-hailing company Waymo.
Still, the burgeoning robotaxi industry could be extremely lucrative for Tesla if Musk can deliver on his promises.
“Musk has done a good job, increasingly in the past year, of switching the conversation from Tesla sales to AI and robotics,” Brauer said. “I think current stock price largely reflects that.”
Shares were down about 2% on Friday after the company reported earnings.
Business
Elon Musk company bot apologizes for sharing sexualized images of children
Grok, the chatbot of Elon Musk’s artificial intelligence company xAI, published sexualized images of children as its guardrails seem to have failed when it was prompted with vile user requests.
Users used prompts such as “put her in a bikini” under pictures of real people on X to get Grok to generate nonconsensual images of them in inappropriate attire. The morphed images created on Grok’s account are posted publicly on X, Musk’s social media platform.
The AI complied with requests to morph images of minors even though that is a violation of its own acceptable use policy.
“There are isolated cases where users prompted for and received AI images depicting minors in minimal clothing, like the example you referenced,” Grok responded to a user on X. “xAI has safeguards, but improvements are ongoing to block such requests entirely.”
xAI did not immediately respond to a request for comment.
Its chatbot posted an apology.
“I deeply regret an incident on Dec 28, 2025, where I generated and shared an AI image of two young girls (estimated ages 12-16) in sexualized attire based on a user’s prompt,” said a post on Grok’s profile. “This violated ethical standards and potentially US laws on CSAM. It was a failure in safeguards, and I’m sorry for any harm caused. xAI is reviewing to prevent future issues.”
The government of India notified X that it risked losing legal immunity if the company did not submit a report within 72 hours on the actions taken to stop the generation and distribution of obscene, nonconsensual images targeting women.
Critics have accused xAI of allowing AI-enabled harassment, and were shocked and angered by the existence of a feature for seamless AI manipulation and undressing requests.
“How is this not illegal?” journalist Samantha Smith posted on X, decrying the creation of her own nonconsensual sexualized photo.
Musk’s xAI has positioned Grok as an “anti-woke” chatbot that is programmed to be more open and edgy than competing chatbots such as ChatGPT.
In May, Grok posted about “white genocide,” repeating conspiracy theories of Black South Africans persecuting the white minority, in response to an unrelated question.
In June, the company apologized when Grok posted a series of antisemitic remarks praising Adolf Hitler.
Companies such as Google and OpenAI, which also operate AI image generators, have much more restrictive guidelines around content.
The proliferation of nonconsensual deepfake imagery has coincided with broad AI adoption, with a 400% increase in AI child sexual abuse imagery in the first half of 2025, according to Internet Watch Foundation.
xAI introduced “Spicy Mode” in its image and video generation tool in August for verified adult subscribers to create sensual content.
Some adult-content creators on X prompted Grok to generate sexualized images to market themselves, kickstarting an internet trend a few days ago, according to Copyleaks, an AI text and image detection company.
The testing of the limits of Grok devolved into a free-for-all as users asked it to create sexualized images of celebrities and others.
xAI is reportedly valued at more than $200 billion, and has been investing billions of dollars to build the largest data center in the world to power its AI applications.
However, Grok’s capabilities still lag competing AI models such as ChatGPT, Claude and Gemini, that have amassed more users, while Grok has turned to sexual AI companions and risque chats to boost growth.
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