Analysis and Summary: PM Modi Joins Truth Social

Overview

• Prime Minister Narendra Modi joined Truth Social, a right-leaning social media platform founded by former US President Donald Trump in 2022.
• This move highlights Modi’s expanding engagement with global digital platforms, particularly following his podcast with Lex Fridman.

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Key Facts About Truth Social

Platform Background

• Launched in February 2022 as an alternative to mainstream social media platforms like Facebook and X (formerly Twitter).
• Created after Trump was banned from major social networks following the January 6, 2021, attack on the US Capitol.

User Base and Features

• Primarily attracts conservative and right-leaning users in the United States.
• Functions similarly to X, with features like “Truths” (tweets), “ReTruth” (retweets), likes, and comments.
• Requires users to be at least 18 years old and provides a purple color scheme.

Popularity

• Truth Social has struggled to grow beyond its core conservative user base.
• Similarweb reported only 5 million monthly visits in February 2024, compared to Facebook’s 3 billion monthly active users.
• A 2022 Pew Research Center survey found that while 27% of Americans had heard of Truth Social, only 2% used it for news.

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Financial and Business Challenges

Stock Performance

• TMTG (Trump Media & Technology Group), the parent company of Truth Social, saw its stock price plummet by over 40% since Trump’s inauguration in January 2024.
• This decline mirrors Tesla’s stock drop of 45% over the same period.

Earnings Report

• TMTG reported a staggering $400 million loss in 2024, with only $3.6 million in revenue.
• Analysts suggest that TMTG’s valuation is more reflective of Trump’s political trajectory than its actual business performance.

Executive Actions and Legal Issues

• High-ranking executives reportedly began offloading their stocks as early as last summer, raising concerns about the platform’s long-term viability.
• The company is also grappling with multiple lawsuits and allegations of mismanagement.

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Market Implications

Competitive Dynamics

• Truth Social faces stiff competition from established platforms like Facebook and X, which have far larger user bases and more resources.
• Its niche focus on conservative users limits its growth potential but strengthens its appeal to specific demographics.

Strategic Considerations

• Modi’s decision to join Truth Social could signal an effort to expand his international outreach, particularly among conservative audiences in the US.
• However, the platform’s limited user base and financial struggles raise questions about its long-term sustainability.

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Long-Term Effects and Regulatory Impacts

Potential Outcomes

• The future of Truth Social remains uncertain, with its success heavily tied to Trump’s political influence.
• If Trump’s popularity wanes or if the platform fails to attract new users, it could face further decline.

Regulatory Environment

• Stricter content moderation policies or regulatory scrutiny could impact Truth Social’s operations, particularly given its history of hate speech and extremism concerns.

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Conclusion

Truth Social represents a niche but politically charged platform with limited mainstream appeal. While Modi’s involvement underscores the potential for global outreach, the platform’s financial struggles, executive actions, and legal challenges raise significant doubts about its long-term viability. Businesses and leaders engaging with Truth Social must carefully weigh the risks and opportunities in this volatile environment.