So, here we are. The news flashes that Donald Trump’s back in the presidential seat, and this time he's got RFK Jr. as his personal health coach and Elon Musk possibly running tech support at the White House.

Shares in Truth Social (DJT), catapulted nearly 50% in pre-market trading before cooling off to a “respectable” 30% gain. (And just like that, investors decided to party like it’s 2016, MAGA hat and all). DJT’s stock flew past $51 a share, not because of any groundbreaking business moves but purely on the political hype train of the 47th President (maybe the last minute Rogan endorsement worked?).

But if you thought this spike had anything to do with, say, earnings—well, I’ve got a house to sell you in Malibu. DJT’s latest financials, thoughtfully dropped on election night for maximum chaos, show a $19.2 million loss in Q3 (yes, they actually lost money). Revenue? Just a hair over $1 million. But that didn’t faze the crowd. Why? Because DJT trades on one thing and one thing only: Trump’s political pulse. Forget balance sheets; the only metric that counts here is whether Trump’s up or down in the polls. With him back in office, investors decided that minor details like revenue or profit were basically irrelevant.

For instance, just last week, it tanked 34% when it looked like “Word Salad” Kamala Harris might pull a surprise win. But now, with “The Donald” claiming victory, it’s surged over 100% in just the past month. 

And you’ve gotta love it: DJT’s latest rally just shot its valuation into the stratosphere at an absurd $9 billion. Yep, a company pulling in less revenue than a Taco Bell during lunch rush now has a price tag that’d make actual tech giants do a double take. And Trump, with his 58.9% stake, just saw his net worth jump $1.4 billion overnight. (Becoming President of the most powerful country on earth and making a billion the same night is about as good as it gets).

Of course, Truth Social’s CEO Devin Nunes (yep, that Devin Nunes) couldn’t resist calling this quarter “extraordinary.” He bragged about the 1.4 million monthly users on the app and their “legion” of shareholders (all 650,000 of them). And sure, their losses did drop from last year’s $26 million. But when “progress” is measured by the fact that your company only bled out $19 million instead of $26 million, you might want to rethink the victory dance. Nunes, though, is pushing the story hard, flaunting plans for Truth+ streaming (because apparently, the world needs even more streaming content) and hinting at potential fintech expansions (whatever that means).

Obviously, Truth Social isn’t exactly lighting up the social media universe. Compared to giants like Meta, TikTok, or Musk’s X, it’s a mere blip on the radar (it’s basically the equivalent of your cousin’s basement podcast). And while Nunes can sing the praises of their loyal investors all he wants, the numbers tell a different story. DJT’s stock might be doing a happy dance alongside Trump’s latest political win, but keeping this hype alive after the election? That’s a whole other circus act. (Because, let’s be honest, even hype has its expiration date).

So where does Truth Social go from here? Trump’s name alone can only carry this thing so far. Sure, it’s got the die-hard crowd, but those won’t pay the bills forever. And if Tuesday’s earnings made anything clear, it’s that DJT is miles away from profitability. Without real revenue, the $9 billion valuation might turn out to be more flash than substance. There’s even rumors that Musk’s X could someday buy Truth Social, folding it into the Musk media empire and turning Trump’s echo chamber into just another corner of Elon’s universe. 

(Source: Bloomberg)

Oh, and let’s keep an eye on my prediction the DJT would hit 100% gains today.

PS: And speaking of wild moves, DJT’s recent leap is just a taste of what’s been happening. Our latest alert rode the political frenzy with a 116% jump in minutes. And our systems are constantly alerting us to stocks that are on the verge of a huge short squeeze. If you want to get in on the next trade alert, click here to become a Stocks.News Premium Member.

Stock.News has positions in Meta.