Former President Donald Trump’s Truth Social platform finds itself in sharp contrast to the success witnessed by Reddit, which recently celebrated a triumphant IPO.
KEYPOINTS:
Sharp Decline in DWAC Stock: Following shareholder approval of the merger between Digital World Acquisition Corp. (DWAC) and Trump’s social media company, DWAC shares plummeted nearly 14%.
Financial Concerns: There are concerns about Trump Media & Technology Group’s ability to generate revenue, with reported losses of nearly $50 million and minimal revenue in recent financial quarters.
Legal Troubles: Trump faces significant civil judgments exceeding half a billion dollars and mounting legal bills from multiple cases.
While Trump exclaims his adoration for Truth Social, investors appear less enamored, as reflected by a significant downturn in stock price following the merger vote with Digital World Acquisition Corp.
The merger, initially met with optimism as DWAC shares soared to a 52-week high, has now faced a harsh reality check.
Shareholder approval precipitated a nearly 14% plunge in DWAC stock, signaling potential challenges ahead for Trump’s majority stake in the newly formed Trump Media.
With DWAC shares closing at $36.94, concerns linger regarding the platform’s ability to generate substantial revenue, compounded by Trump’s mounting legal troubles.
Donald Trump started the Truth Social media network after he was banned from Twitter, following the January 6 attack on the Capitol.
Financial viability
Despite Trump’s proclamation of affection for Truth Social, doubts persist regarding its financial viability.
Trump Media & Technology Group reported significant losses and minimal revenue in recent financial quarters, casting shadows over its long-term prospects.
Trump’s legal battles, including civil judgments exceeding half a billion dollars, raise questions about his ability to navigate the company’s financial affairs.
Truth Social’s valuation is completely out of whack and will likely attract short sellers.
Consider: Reddit is worth $7.5B and has revenues of $800m, while Truth Social is “worth” $5B on revenues of $5m. This is quite literally a Potemkin company; reality will catch up.
The six-month restriction on Trump’s ability to sell shares offers a temporary respite, but the potential for an early lift on this restriction poses further uncertainties.
Trump’s involvement, coupled with the composition of the new board of directors, including his son Donald Trump Jr., underscores the intricate intersection between business interests and legal entanglements.
Ahron Young is an award winning journalist who has covered major news events around the world. Ahron is the Managing Editor and Founder of TICKER NEWS.
OpenAI has taken another giant leap forward with the launch of ChatGPT Atlas — an AI-powered web browser that could redefine how people search, explore, and interact online. Investors and competitors are watching closely as this new technology challenges the dominance of traditional browsers like Google Chrome.
With ChatGPT Atlas, users may soon experience a web that feels less like typing into a search box and more like conversing with an intelligent assistant. The integration of AI could make browsing faster, more intuitive, and more personalised than ever before — but it also raises serious questions about privacy and data use.
As AI becomes more deeply embedded in the digital world, ChatGPT Atlas could represent the next major step toward a fully AI-driven online experience. What does this mean for users — and for the tech giants trying to keep up?
In Short:
– OpenAI partners with Bryan Cranston and unions to combat deepfakes on its Sora app.
– The app now includes options for people to control their likenesses and voices.
OpenAI announced it will work with Bryan Cranston, SAG-AFTRA, and actor unions to combat deepfakes on its AI video app, Sora.Cranston voiced concerns after unauthorized AI-generated clips featuring his likeness emerged after Sora 2’s launch in late September. He showed gratitude to OpenAI for taking steps to safeguard actors’ rights to control their likenesses.
The partnership aims to enhance protections against unauthorized AI content. The Creative Artists Agency and United Talent Agency had previously criticized OpenAI, citing risks to their clients’ intellectual property.
Last week, OpenAI blocked disrespectful videos of Martin Luther King Jr. at the request of his estate, following similar pressures. Zelda Williams also requested the public refrain from sending her AI-generated clips of her late father, Robin Williams.
Policy Changes
Following tensions post-launch, CEO Sam Altman revised Sora’s policy to give rights holders greater control of their likenesses.
The app now allows individuals to opt-out, reflecting OpenAI’s commitment to respond quickly to concerns from performers.
OpenAI backs the NO FAKES Act, supporting legislation that aims to protect individuals from unauthorized AI-generated representations.
OpenAI is focused on ensuring performers’ rights are respected regarding the misuse of their voices and likenesses. Altman reiterated the company’s dedication to these protections.
In Short:
– AWS outage on Monday disrupted major apps like Fortnite, Snapchat, and affected several global companies.
– UK companies including Lloyds Bank and Vodafone reported issues due to the AWS outage.
Amazon’s AWS experienced a significant outage on Monday, impacting major apps including Fortnite and Snapchat. The disruption affected connectivity for numerous companies globally.AWS reported increased error rates and latencies across multiple services and is attempting to recover quickly.
The outage marks the first significant internet disruption since a previous incident last year that impacted essential technology systems globally. AWS offers on-demand computing and storage services and is vital for many websites and platforms.
Multiple companies reported disruptions, including AI startup Perplexity, cryptocurrency exchange Coinbase, and trading app Robinhood. Perplexity’s CEO confirmed on X that the outages were linked to AWS issues.
Amazon’s shopping site, Prime Video, and Alexa services also faced difficulties, according to Downdetector. Other affected platforms included popular gaming applications like Clash Royale and financial services such as Venmo and Chime.
Uber competitor Lyft’s app was reported down for numerous users in the U.S. Messaging platform Signal also acknowledged connection problems stemming from the AWS outage.
British Companies
In the UK, Lloyds Bank, Bank of Scotland, and telecom services provider Vodafone were notably affected. The HMRC’s website also encountered issues during this outage.
Elon Musk stated that his platform, X, remained operational despite the widespread disruptions.