Trump Media is making a bigger push into streaming video, and the stock is now up 47% over the last week.
Trump Media & Technology Group (DJT 17.26%) stock is jumping again in Thursday’s trading. The company’s share price was up 16% as of 2 p.m. ET, and has now risen roughly 47% over the last week of trading.
Trump Media stock is making big gains following an announcement from the company that its Truth+ streaming video application has launched. The application is now available for devices using Alphabet‘s Android operating system, and the streaming service’s debut is pushing Trump Media’s share price higher.
Trump Media’s ecosystem takes its next step forward with Truth+
According to Trump Media’s press release, Truth+ will feature streaming programming that includes “news, entertainment, faith-based content, weather, documentaries, children’s content, and more.” Truth+ also incorporates linear TV channels and video on demand (VOD) offerings, and it adds additional features including live TV rewind, network DVR, and Spanish language interface options to streaming video offerings previously available through the Truth Social service.
What comes next for Trump Media?
The announcement of the launch of Truth+ has provided another bullish catalyst for Trump Media. The streaming platform’s debut has helped extend meme-stock momentum that’s powered big valuation gains for the company over the last week.
But while the Truth+ news has driven big gains for Trump Media stock, it remains to be seen how much of a sales driver the service will be for the business — and how much it will cost to scale a competitive streaming platform. In previous filings, the company indicated that its video streaming offerings likely wouldn’t be a major sales contributor until next year.
Thus far, Trump Media’s Truth Social application has been the centerpiece of its business. Truth Social is a social media application that is similar to X, the platform formerly known as Twitter. While the company hasn’t officially broken out user engagement figures for the service, most estimates suggest that the platform still has well below 10 million active users.
With the company recording just $828,000 in sales in the second quarter, it also seems clear that Truth Social hasn’t been attracting much in the way of advertising revenue. Streaming video could provide Trump Media with a significant new revenue source, but building out the content library needed to build a substantial user base will likely be quite costly.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.
