Former President Trump insisted Thursday that Truth Social is in “very strong shape” after the parent company reported $58 million in losses last year and its stock price fell more than 20% this week.
“All of TRUTH SOCIAL’s competitors, especially those in the Radical Left Democratic Party who are failing on every level, use their vaunted ‘disinformation machine’ to try to trick people into believing the truth, but it’s easy to do. “No, it’s not that big of a deal and you can’t ‘spread the word’ like a lot of other things, but they know it’s false,” Trump told Truth Social. I mentioned it in my post.
After more than two years of delays, Truth Social’s parent company, Trump Media & Technology Group, completed its merger with blank check company Digital World Acquisition Corporation (DWAC) and went public last week.
Trump Media had a strong debut on the stock market, with shares soaring above $79 on the first day of trading and settling around $62 by the end of the week.
However, the company’s stock price plunged on Monday after it reported a $58 million loss in 2023. By market close on Monday, Trump Media stock had fallen 21.4% to $48.66 per share. As of Thursday morning, the company’s stock price was hovering around $47.
Trump claimed Thursday morning that Truth Social has more than $200 million in cash and “zero debt.” Financial information regarding the company’s first quarter results is not yet available.
Trump Media received an influx of $300 million from its merger with DWAC. according to it, Regulatory notificationthe company generated revenue of about $4.1 million last year and spent about $16 million on operating expenses and about $39.4 million on interest expense.
“More importantly, experts say this is the main way I communicate information, and for better or worse, people probably want to hear from me more than anyone else in the world,” Trump said. said.
“As we strive to grow our user base and attract more platform partners and advertisers, we are incurring an operating loss and negative cash flow from operations for the foreseeable future,” Truth Social’s parent company said in a Monday filing. It is expected that this will continue.”
It also said, “It is too early to predict when TMTG will become profitable and achieve positive cash flow from its operations.”
Given the company’s weak fundamentals, many financial experts have classified Trump Media as a “meme stock,” and enthusiasm for the former president has pushed the stock higher than expected.
Trump owns about 58% of Trump Media, valued at about $3.6 billion, based on the company’s stock price as of Thursday morning.
However, the former president insisted that Truth Social is “very good for a start-up” and “growing rapidly.”
“See, by leveraging the truth, I became the Republican nominee for President of the United States in record time! When I support politicians on the truth, they almost always win. It didn’t work. I wouldn’t use it if I couldn’t do it or communicate it properly – but it works, and it works really well – and the fun is just beginning!!!” he said.
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