Donald Trump 'sinking': 'Truth Social' platform reports $16.4 million loss

Donald Trump's social media company, Trump Media and Technology Group, has reported a $16.4 million loss and quarterly revenue of less than $1 million, just months after it began trading publicly amid significant turmoil this year.

In its latest filing with the Securities and Exchange Commission on Friday, the parent company of Truth Social stated that it generated $837 thousand in revenue in the second quarter of 2024, a 30 percent decrease compared to the same period last year, and that it also paid millions of dollars to cover legal expenses related to its merger with the special purpose acquisition company Digital World Acquisition Corp.

Furthermore, a press release stated:

"In addition, the Company incurred $3.1 million in information technology consulting and software licensing expenses, primarily related to the software licensing agreement that will launch its new TV streaming service."

Trump Media launched its Truth+ streaming service this month and believes that its strong balance sheet, consisting of $344 million in cash and cash equivalents with no debt, will enable the expansion and improvement of its new service.

$58 MILLION LOSS REPORTED FOR LAST YEAR

However, its market capitalization of approximately $5 billion is considered an extraordinarily high valuation given its very modest sales.

The latest financial results are not particularly surprising, considering that the company reported a $58 million loss for last year in April, which led to a collapse in its stock price.

Trump Media shares closed at $66.22 on their opening day on March 27. At the market close on Friday, they were at $26.21.

According to a report by Independent Türkçe, the price of Trump Media stock has been volatile almost since it began trading on the stock exchange. Trump himself is the largest shareholder in the company. His 78.75 million shares account for nearly 58 percent of the common stock.

STOCK PRICES ROSE AFTER ASSASSINATION ATTEMPT

Following the assassination attempt on the former US President, the company saw its stock price rise by 33 percent in Monday's trading after a turbulent weekend.

The price of Trump Media shares jumped 48 percent before the opening bell, marking the company's best trading day since its market debut in March.

Truth Social plays a significant role in Trump's re-election campaign, and the former president frequently posts several times a day.

Trump has 7.5 million followers on the site, which he founded after being banned from both Twitter and Facebook following the January 6, 2021, Capitol riot.