Donald Trump's small social media empire revealed another big loss and declining revenue in a surprise report to the stock market as the first polls closed on election night.
Trump Media & Technology Group (TMTG) stock rose erratically in the final stages of the campaign, more than tripling in value in a matter of weeks, before stalling. On election day, Nasdaq halted trading in the company's stock, represented by the ticker symbol DJT, several times as the stock price fluctuated significantly.
The company's fledgling social network, Truth Social, remains small compared to the likes of Meta's Facebook and Instagram. TikTok; and Elon Musk's X, formerly Twitter. TMTG's broader business also continues to lose money.
TMTG's net sales fell about 6% to $1 million in the three months ended September 30, but its net loss narrowed to $19.2 million from $26 million a year earlier. TMTG attributed the loss to litigation costs, acquisition costs, and research and development costs.
Despite the company's meager financial returns, that hasn't prevented it from building an eye-popping $6.8 billion valuation since its market debut earlier this year, with Trump's majority stake on paper It is worth almost $3.9 billion.
TMTG's rise in the final stages of the campaign coincided with a clear tilt toward Trump in the betting market, with predictions showing Harris' odds of winning were greater than the former president's. Its recent achievements are outlined in a document released Tuesday night. TMTG did not formally notify investors that it would be made public on election day.
TMTG's market's chaotic rise has put it in the ranks of so-called “meme stocks,” including video game retailer GameStop, which has been on the wall in recent years by setting up an unexpectedly volatile rally amid a wave of day traders. It's causing a stir in the city.
TMTG stock rose 6% in after-hours trading after Tuesday's earnings release. The stock had soared nearly 18% the previous day, but fell into the red and ended the day down 1.2%.
TMTG CEO Devin Nunes, a Trump ally and former U.S. representative, hailed an “extraordinary quarter” for the company and touted its “army” of retail investors. As of last month, the company had approximately 650,000 shareholders. According to the analytics firm, approximately 782,000 people were using social networks each month as of May. Similar web reports.
Nunes said efforts to develop the streaming arm of the business “are just the beginning, not the end of our expansion,” adding that “TMTG is open to potential mergers and acquisitions with companies that benefit from Trump Media.” We continue to explore possibilities for further growth.” Technology and branding, including in the field of fintech. ”
