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
In a first for the country, voters in Monterey Park ban data centers
Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.
As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.
Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.
Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.
That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.
“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”
The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.
The Data Center Coalition, an industry trade group, expressed disappointment in the vote.
“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.
“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”
SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.
The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.
City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.
There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.
“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.
Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.
California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.
That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.
In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.
Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”
Business
Rent-hike ban to protect fire victims ends despite gouging concerns
A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.
The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.
The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.
“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”
Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.
It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.
Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.
“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.
Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.
“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”
Mitchell did not immediately respond to a request for comment.
There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.
In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.
In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.
A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”
“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.
Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.
L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.
Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.
Newsom defended the price-gouging protections shortly after they went into effect.
“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”
The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.
“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.
Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.
Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.
The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.
Business
Read Nick Bilton’s Letter to Scott Pelley
Dear Mr. Pelley:
I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.
Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.
Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.
Sincerely,
Nick Bilton
Executive Producer, 60 Minutes
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