Just days after an extravagant entrance into the stock market, Donald Trump’s social media venture revealed a staggering loss of nearly $58.2 million for the past year, causing its stock to plummet by over 21%. This downturn for Trump Media & Technology Group, the firm behind Truth Social, starkly contrasts with the $50.5 million profit reported in 2022, according to filings with securities regulators.
In 2023, Trump Media generated $4.1 million in revenue, a notable increase from $1.5 million in the previous year, as indicated by the SEC filing. Following its merger with Digital World Acquisition Corp., the company began trading on the Nasdaq under the ticker symbol DJT on March 26, experiencing a tumultuous journey since then.
Although initially soaring to over $79, the company’s stock has since retreated towards its initial offering price of $49.95, closing at $48.66 after Monday’s market decline, impacting early investors negatively. Market analysts have likened the frenzy surrounding Trump Media to the meme stock phenomenon of 2021, which propelled shares of struggling companies like GameStop and AMC Entertainment to extraordinary levels. On Monday, these “meme stocks” also experienced declines, with GameStop and AMC falling over 4% and 15%, respectively, at market close. Reddit, another recently public company, was down nearly 7%.
Trump’s social media platform was anticipated to provide financial relief amid mounting legal and financial challenges for the presumed Republican presidential candidate. In addition to facing four criminal cases with associated legal costs, Trump is confronting a civil fraud penalty exceeding $454 million after a New York state judge’s ruling on financial misrepresentation.
Despite winning a reduction in the amount required to pause collection pending appeal to $175 million, Trump must produce the funds by Thursday. He previously posted a $92 million bond related to a defamation lawsuit. However, his current cash reserves remain uncertain, with approximately $294 million reported in his most recent financial statement and additional income from asset sales in subsequent periods.
