Truth Social Stock (NASDAQ:DJT) Crashes 20% as Mobile Plan & Phone Launch Backfires
Truth Social''s parent company TMTG saw its shares nosedive after unveiling a baffling ''free speech'' mobile plan and hardware play.
The bleeding: DJT stock plunged 20% in pre-market trading as investors fled what analysts called a ''distraction from core platform growth.''
Reality check: The move comes as Truth Social struggles to monetize its MAGA base—while burning through cash at a rate that would make a Web3 startup blush.
Bottom line: When your ''anti-woke'' phone can''t outperform Trump NFTs as a revenue stream, maybe stick to posting.
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The new phone, and plan, will be poised to launch this September, reports note, and will offer unlimited talk, text and data for $47.45 per month. If those numbers sound familiar, yes, President Trump is both our 45th and 47th president, with Joe Biden wedging in there as number 46. The service is known as Trump Mobile, reports note, and will come with an array of benefits.
Not only will users get the aforementioned unlimited features, but also included is roadside assistance as well as what it calls a “telehealth and pharmacy benefit.” Free international calling to over 100 different countries, including military bases, is also on hand. Interestingly, reports note that the Trump Organization is not designing, developing, manufacturing, or selling these plans itself. Rather, it seems to have licensed the name out. This, not surprisingly, is raising “ethics concerns” from the usual sources.
Maybe Better Than You Might Think
Of particular interest is the phone itself, which will be an Android device that features a 6.8 inch AMOLED screen. That by itself is a pretty solid play, and it gets better. The phone boasts 256 gigabytes of internal storage as well as 12 gigabytes of RAM, and a main camera that shoots in 50 megapixel rates. The selfie camera alone runs at 16 megapixel, and the whole thing is poised to sell for $499, a downright bargain when compared to, say, the newest iPhone.
A phone that offers free calling to military bases is likely to have a welcome support base among soldiers’ families. Further, a comparative bargain of a smartphone that carries the Trump name—not to mention the Trump aesthetic as much of the phone is gold-colored—could prove a winner as well. This sounded outlandish at first blush, but a closer look says this might be a quiet winner.
Is Truth Social Stock a Good Buy Right Now?
Turning to Wall Street, no analysts currently hold a rating on DJT stock. So we turn to the last five days of trading instead. As it turns out, DJT stock is down 10.6% for the period. Truth Social shares are generally down over the period in question. There was a bit of a rally seen over the weekend, but much of that rally was lost with today’s trading.
Disclosure
