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On Reddit and Truth Social, users have been trying to re-create the meme-stock magic for Trump Media and Technology Group—the company behind Truth Social—that boosted companies like GameStop in 2021. So far, they haven’t been too successful.

Truth Social, former president Donald Trump’s Twitter copycat, lacks two essential ingredients to the narrative of previous campaigns: underlying fundamentals and the foil of institutional investors. Large hedge funds had shorted GameStop, betting that the price would go down. This time, the stock is owned primarily by retail investors.

Unlike other social media companies, the Truth Social doesn’t disclose how many users it has, but has said previously that just 9 million people have signed up for the site, compared with over 3 billion monthly active users on Facebook. TruthSocial visitors have declined from 5.4 million in January to around 5 million in February, according to web analytics firm SimilarWeb. The site’s lack of users has contributed to poor financial performance.

On the r/wallstreetbets subreddit, home of meme-stock boosterism, most users aren’t buying what Truth Social is selling.

“If you invest in this on a long enough timeline you will lose everything. Thus is strictly a movement play,” wrote Reddit user Rich4718. “If you think Donald Trump is going to create an income positive social media platform you are an absolute fucking moron.”

The company started trading publicly on March 26 under the ticker symbol DJT and has already experienced wild swings in price. On Monday, the stock slid nearly 20 percent, erasing $2 billion in value.

In a filing on Monday, the company said it had just over $4 million in revenue and $58 million in net losses. This comes after the auditor for Trump Media and Technology Group made a startling admission: The company’s losses “raise substantial doubt about its ability to continue,” according to a filing with the US Securities and Exchange Commission on March 25.

And yet the company is valued at around $7 billion, despite reporting these sizable losses. The valuation is propped up in part by Trump fans who see investing in the company as a way to support the former president. In some cases, these investors hold a genuine belief that Truth Social could become a major social media player.

Albert Choi, a professor of Law at the University of Michigan, says investors in Trump Media may be motivated by factors beyond traditional financial logic, like boosting the price through generating hype.

“If that’s your primary motivating factor, then you’re not going to care too much about whether the company is actually making money,” says Choi.

“I believe DJT is an investment in Donald Trump, not just Truth Social,” Reddit user autsauce, who declined to share their real name, tells WIRED. “If market participants start asking that question, which I am betting they will, they will likely arrive at a very different price valuing Truth Social in a silo.”

Choi noted that Trump winning the Presidential election could actually hurt the company’s stock, as investors’ perceived need to support the former president financially by investing could fade.

“My guess is that the interest in the stock would largely disappear,” Choi said.

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