Former President Trump’s social media company tumbled on the stock market Monday after it reported an annual loss of $58 million in a regulatory filing Monday.
Shares of Trump Media & Technology Group, the parent company of Trump’s platform Truth Social, fell about 24% shortly after 1 p.m. EDT. The stock price fell to about $47.
Trump Media merged with “blank check” company Digital World Acquisition Corporation (DWAC) in March, allowing President Trump’s social media company to go public. DWAC stock closed at just under $50 a day before the newly combined company went public on the stock market.
The surge in Trump Media shares began after the company reported a loss of $58 million last year in a filing with the Securities and Exchange Commission (SEC) on Monday. Trump Media generated $4.1 million in revenue in 2023 and approximately $750,000 in revenue in the fourth quarter of 2023, compared to operating expenses of $16 million and interest expense, according to filings. The total was $39.4 million.
“Trump Media expects to continue to incur operating losses and negative cash flow from operating activities for the foreseeable future as we strive to expand our user base and attract more platform partners and advertisers,” the company said Monday. stated in the filing.
“TMTG’s ability to become profitable and generate positive cash flow depends on TMTG’s success in growing its user base, platform partners, and advertisers,” the company continued, adding that in order to expand its appeal, It added that it has begun testing and using video streaming and other content hosting features.
“Given these uncertainties, TMTG believes it is premature to predict when TMTG will achieve profitability and positive cash flow from its operations,” the company said.
Trump Media had a strong debut on the stock market, with the stock hitting $79.38 on its first day of trading. But by Thursday, the last day of trading for the week before Easter, the company’s stock price had settled near $62 per share.
Experts say Trump Media exhibits characteristics of a “meme stock” and question Trump Media’s long-term viability given the disconnect between spending and revenue. There is.
Shannon Devine, a spokeswoman for Truth Social, told The Hill last week: We are leading an entire movement to reaffirm freedom of expression in the digital space. ”
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