Truth Social Suffers User Exodus, DJT Share Price Climbs

Despite seeing some data that indicates reduced numbers of users across the flagship platform, DJT shares (NASDAQ: DJT) are on the rise in the premarket, up 2.71%.

Trump Media & Technology Group, which trades under the ticker symbol DJT took a downward turn on Friday, closing the week out 6.25%. Despite the shift, the DJT share price remarkably still ended the week 10% up overall, and kicks the premarket session off green irrespective of what appears to be significant user losses.

Recent reports reveal a drop in user numbers for its flagship social media platform, Truth Social. According to data from web analytics service Similarweb, the platform is challenged with retaining its user base. As the firm do not report on user numbers directly, looking for web trends is one of those ways to assess activity on the platform.

In April, the monthly active users of Truth Social plummeted by 23% compared to figures from the previous month. This downward trend was also noticeable in the mobile segment of the website's users, which saw a 13% decrease.

It's not just user engagement that is causing concern for Trump Media & Technology. The company has been grappling with a series of challenges since it entered the public markets. One significant issue has been discrepancies with the company's auditor over accusations of fraudulent filings to the Securities and Exchange Commission (SEC), casting a shadow over the organization's business practices.

Amidst these operational challenges, former President Donald Trump, who is closely associated with Truth Social, is currently entangled in legal proceedings. He is involved in a lawsuit alleging that hush money was paid to adult film star Stormy Daniels. This legal battle has further risked tarnishing the image of the brand, potentially affecting the stock's performance.

Despite these adversities, trading activity in DJT stock remains high, with 6.575 million shares changing hands on Friday. Long term holders will not be dismayed by the volatility seen, as it seems to come with the territory on this one, and gains of 192.21% since the beginning of the year will no doubt be comfort to some.