Shares of Trump’s social network fell 21% after publication of bad financial results
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Yesterday, April 1, Trump Media & Technology Group Corp., owned by Donald Trump. (TMTG), owner of the social network Truth Social, reported about a loss of $58 million at the end of 2023. It ended 2022 with a profit of $50.5 million. Revenue amounted to $4.1 million (an increase of 2.7 times). After the publication of such reports, the company’s shares fell by 21.5%.
Last week, TMTG became a public company: it did not conduct an IPO, but entered the stock exchange by merging with a public “dummy” company (Special purchase acquisition company, SPAC), created specifically for such actions. On the first day of trading the company’s shares grew up by 50%, thereby its value was estimated at $9.4 billion. Based on the results of yesterday’s trading, TMTG is valued at only $5.5 billion. Donald Trump launched Truth Social in 2022, after his accounts on Twitter, Facebook (owned by Meta , recognized as extremist and banned in the Russian Federation) and YouTube were blocked. The social network has about 600 thousand users, many reproach in the spread of far-right ideology and nationalism.
“TMTG has seen a lot of hype and enthusiasm, but it still has a long way to go to become a true, massive challenger to social media platforms like X (Twitter), Instagram, TikTok and other platforms,” said Michael Ashley Shulman, an analyst at Running Point Capital. BF Borgers of Colorado, TMTG’s auditor, said yesterday that its losses “raise significant doubt about its ability to continue as a going concern.”
Mr. Trump himself yesterday posted bail $175 million to gain the right to appeal a New York court’s decision in a fraud case.
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