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Truth Social stock slips. Maybe read the SEC filings before investing

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Truth Social going public is Trump’s latest attempt to raise money. I read the SEC filing notes and found some warnings. Maybe don’t bet your 401(k) on this one.


You may have heard – because the news was everywhere last week – that Donald Trump is suddenly a few billion dollars richer on paper after his social media site Truth Social went public Tuesday.

And you may be tempted to get in on the action for the new stock that inspired plenty of initial – even irrational? – exuberance in the market.

But take caution here, for the former one-term president has a very long history of business and personal calamities, along with a future that portends even more misfortune.

Don’t take my word for it.

That warning comes straight from two filings Truth Social submitted about Trump last month to the U.S. Securities and Exchange Commission, the agency in charge of protecting investors, maintaining orderly markets and “facilitating capital formation.”

Among the looming threats cited for the Republican nominee for president: He owes more than half a billon dollars in civil verdicts, has four pending criminal cases, has an extensive track record for businesses filing for bankruptcy protections and saw several entrepreneurial efforts totally flop.

Oh, and one SEC filing notes that Truth Social has such a limited reach with users that even Trump might migrate to another social media site like X, the hellscape formerly known as Twitter, to get a bigger audience.

Truth Social’s value “may diminish if the popularity of President Donald Trump were to suffer,” the SEC filing said.

A Pew Research Center poll released March 19 found 60% of Americans hold an unfavorable view of Trump.

Maybe don’t bet your 401(k) on this one.

Truth Social’s own numbers aren’t great

Trump, who owns 60% of the company that now controls Truth Social, is obligated in his license agreement to make “any non-political” posts there and then wait six hours before posting anywhere else, according to a Feb. 14 SEC filing that said the site “has limited time to benefit from his posts and followers may not find it compelling to use Truth Social to read his posts that quickly.”

The company also said Trump has “sole discretion” to use any social media website for “politically-related” posts. And the company “may lack any meaningful remedy if President Trump minimizes his use of Truth Social.”

I mean, you could say a thrice-married former real estate developer known for stiffing contractors for pay and dumping political allies in a fury has a reputation for just walking away.

Trump’s money problem: Biden and Trump are both in a world of hurt. But Biden has the cash to fix his problems.

Truth Social notes that it “will need millions” of users “to register and regularly use” the site to be successful.

The company cited a…

Read More: Truth Social stock slips. Maybe read the SEC filings before investing

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