Shares of Trump Media & Technology Group, the parent company of former President Trump’s platform Truth Social, continued to fall at the start of the trading week on Monday, dropping another 10%.
Trump Media stock closed at about $40 on Friday and was trading at about $36 as of Monday morning. The latest numbers mark a steep decline for parent company Truth Social, whose stock price initially hovered above $79 after going public about two weeks ago.
The company’s steady downward slide began last year, when Trump Media announced it had reported a $58 million loss in 2023. Trump Media earned about $4.1 million in revenue last year, but spent about $16 million on operating expenses and $39.4 million in interest expenses, according to regulatory filings. .
Truth Social’s parent company also said it “expects to continue to incur operating losses and negative cash flow from operating activities for the foreseeable future,” calling it “premature.” [Trump Media] To predict when profitability and positive cash flow from the business will be achieved. ”
But Trump Media CEO Devin Nunes insisted Sunday that the company is “well positioned” to return to profitability.
“Even after all the ridiculous costs it took to get here, we’re in a good position,” Nunes told Fox News host Maria Bartiromo on “Sunday Morning Futures.”
“Why are we in a good position?” he continued. “Because we don’t have any debt. We got through this situation debt-free, the platform worked really well, we communicated with millions of people, and we had $200 million left in the bank.” Masu.”
Financial information regarding Trump Media’s first quarter results is not yet available. The company received an inflow of $300 million after merging with blank check company Digital World Acquisition Corp. to go public.
Trump, who owns about 58% of Trump Media, also touted the platform last week as “very solid.”
“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 convince people of the truth, but it’s not easy to do. “No, it’s not that big of a deal and they don’t ‘spread the word’ like so many other things, but they know it’s false,” the former president said in a post on his website. Ta.
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