Why Trump Media Stock is making big gains again today

Trump Media & Technology Group (DJT 17.26%) the stock rises again in Thursday’s trading. The company’s stock price was up 16% at 2:00 PM ET, and is now up about 47% in the last week of trading.

Shares of Trump Media are making big gains following an announcement by the company that it has launched its Truth+ streaming app. The app is now available for devices that use Alphabetits Android operating system, and the debut of the streaming service pushes Trump Media’s stock price higher.

The Trump Media ecosystem takes the 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 adds additional features including live TV rewind, network DVR and Spanish-language interface options to the streaming video offerings previously available through the Truth Social service.

What’s Next for Trump Media?

The announcement of the launch of Truth+ provided another optimistic catalyst for Trump Media. The streaming platform’s debut helped extend the meme stock’s momentum, which generated big valuation gains for the company over the past week.

But while the Truth+ news generated big gains for Trump Media stock, it remains to be seen how much the service will sell for the business — and how much it will cost to scale a competitive streaming platform. In previous filings, the company has indicated that its video streaming offerings likely won’t be a major contributor to sales until next year.

Until now, Trump Media’s Truth Social app has been the centerpiece of its business. Truth Social is a social media app similar to X, the platform formerly known as Twitter. While the company has not officially disclosed user engagement figures for the service, most estimates suggest the platform still has well under 10 million active users.

With the company posting just $828,000 in sales in the second quarter, it also seems clear that Truth Social hasn’t pulled in much in terms of advertising revenue. Video streaming could provide Trump Media with a significant new source of revenue, but building the content library needed to build a substantial user base will likely be quite expensive.