Apr 02, 2024 12:30:00

Donald Trump's social networking site 'Truth Social' lost 8.8 billion yen in one year, and its revenue was only 600 million yen, causing its stock price to plummet 21%

Documents filed with the Securities and Exchange Commission revealed that

Truth Social , the social networking site launched by former President Donald Trump, lost more than $58 million in 2023, while generating revenue of just $4.1 million.

sec.gov/Archives/edgar/data/1849635/000114036124016719/ef20025342_8k.htm
https://www.sec.gov/Archives/edgar/data/1849635/000114036124016719/ef20025342_8k.htm

Trump's Truth Social lost $58 million in 2023
https://www.axios.com/2024/04/01/trump-truth-social-revenue-2023

Trump Media shares plummet 21% days after debut | Reuters
https://www.reuters.com/markets/us/trumps-media-company-falls-after-raising-going-concern-doubts-2024-04-01/

Trump Media lost $58 million last year, SEC filing shows
https://www.cnbc.com/2024/04/01/trump-media-lost-58-million-last-year-sec-filing-shows.html

Shares of Trump Media & Technology Group (TMTG), the company that operates Truth Social, plummeted 21% after the social networking site reported a loss of more than $58 million for the year.

TMTG was just listed on the Nasdaq on March 26, 2024. As a 'meme stock' that became a hot topic on the Internet, it was highly popular,

soaring by about 56% at the opening, and was traded at a high price for a company of its size. However, documents released shortly afterwards revealed that Truth Social was in the red, so TMTG's closing price as of April 1 was $48.66 per share (about 7,400 yen), more than $30 (about 4,600 yen) lower than immediately after it was listed.

The filing said the bulk of the loss, $39.4 million, went to interest expenses, while most of the revenue came from advertising. At the end of the day, the company had just $2.7 million in cash on hand.

TMTG said losses could continue for some time, and the company warned shareholders that it 'may be at greater risk than other social media companies because of Trump's involvement.'

Trump owns 57.3% of TMTG stock, which is worth more than $3.83 billion. TMTG's market capitalization is more than $6 billion, approaching Reddit's $8 billion market capitalization, but Reddit has about 73 million users, while Truth Social has about 8.9 million.

Analysts believe that TMTG is highly valued due to the purchase of shares by political supporters of Trump, and point out that because this is unrelated to the company's performance, there is a risk that its share price will plummet.