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Trump’s Truth Social struggles as Reddit soars

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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 Truth Social: A $3.5 billion windfall awaits

Trump’s legal battles, including civil judgments exceeding half a billion dollars, raise questions about his ability to navigate the company’s financial affairs.

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.

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Tesla is slashing prices to stay competitive

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Tesla cut the U.S. prices of its Model Y, Model X and Model S vehicles by $2,000 each, days after the first-quarter deliveries of the world’s most valuable automaker missed market expectations.

Elon Musk’s electric-vehicle (EV) maker lowered the prices for its Model Y base variant to $42,990, while the long-range and performance variants are now priced at $47,990 and $51,490, respectively, according to its website.

The basic version of the Model S now costs $72,990 and its plaid variant $87,990. The Model X base variant now costs $77,990 and its plaid variant is priced at $92,900.
Tesla North America also said in a post on X said it would end its referral program benefits in all markets after April 30.

Referral program allows buyers to get extra incentives through referrals from existing customers, a strategy long used by traditional automakers to boost sales.

Musk has postponed a planned trip to India where he was to meet Prime Minister Narendra Modi and announce plans to enter the South Asian market, Reuters reported on Saturday.
On Monday Reuters reported, citing an internal memo, that the EV maker was laying off more than 10% of its global workforce.
Earlier this month Reuters reported the EV maker had canceled a long-promised inexpensive car, expected to cost $25,000, that investors had been counting on to drive mass-market growth.
The EV maker reported this month that its global vehicle deliveries in the first quarter fell for the first time in nearly four years, as price cuts failed to stir demand.

Tesla is to report first-quarter earnings on Tuesday.

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TikTok launches Instagram competitor ‘Notes’

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TikTok Notes has launched in Australia & Canada as a formidable competitor to Instagram, offering a unique platform for content creation, text and sharing.

“TikTok Notes is a lifestyle platform that offers informative photo-text content about people’s lives, where you can see individuals sharing their travel tips and daily recipes,” reads the official App Store description.

Take note

The app allows users to create content by combining short videos with text-based notes, closely resembling that of Meta’s Instagram.

Whether it’s sharing a quick tutorial, a personal anecdote, or a thought-provoking message, TikTok Notes is positioned to be a formidable social media platform.

Currently, the app is only available for download and “limited testing” in Australia and Canada.

As it gains momentum, the platform is poised to contest Instagram’s established reign in the social media landscape.

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Ramifications of a TikTok ban to impact Open Internet

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The United States’ longstanding advocacy for an open internet faces a critical juncture as Congress considers legislation targeting TikTok.

The proposed measures, including a forced sale or outright ban of TikTok, have sparked concerns among digital rights advocates and global observers about the implications for internet freedom and international norms.

For decades, the U.S. has championed the concept of an unregulated internet, advocating for the free flow of digital data across borders.

However, the move against TikTok, a platform with 170 million U.S. users, has raised questions about the consistency of America’s stance on internet governance.

Read more – Big tech to handover misinformation data

Critics fear that actions against TikTok could set a precedent for other countries to justify their own internet censorship measures.

Russian blogger Aleksandr Gorbunov warned that Russia could use the U.S. decision to justify further restrictions on platforms like YouTube.

Similarly, Indian lawyer Mishi Choudhary expressed concerns that a U.S. ban on TikTok would embolden the Indian government to impose additional crackdowns on internet freedoms.

Moreover, the proposed legislation could complicate U.S. efforts to advocate for an internet governed by international organizations rather than individual countries.

China, in particular, has promoted a vision of internet sovereignty, advocating for greater national control over online content.

A TikTok ban could undermine America’s credibility in urging other countries to embrace a more open internet governed by global standards.

 

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