Less than a week after a flashy stock market debut, Donald Trump’s social media company disclosed on Monday that it lost nearly $58.2 million (around €54m) last year, sending its stock tumbling more than 21%.
ADVERTISEMENTLosses in 2023 for Trump Media & Technology Group — whose flagship product is Truth Social — mark a stark decline compared with the profit of $50.5 million (around €46.7m) that the former president’s company reported for 2022, according to a company filing with securities regulators.
Revenue for Trump Media came in at $4.1 million (around €3,7m) in 2023, the SEC filing shows, although that’s up from $1.5 million (around €1.3m) in 2022.
After merging with a blank-check company called Digital World Acquisition Corp., Trump Media began trading on 26 March on the Nasdaq stock market in the US under the ticker symbol DJT – and it’s been a volatile ride.
Trump Media’s shares soared in their first couple days of trading — surpassing $79 at one point — but have since fallen closer to their initial offering price of $49.95. The company’s stock closed at $48.66 after Monday’s sell-off, meaning a lot of early investors are taking a hit.
Industry analysts have compared the market reaction around Florida-based Trump Media to the meme stock craze, which boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.
On Monday, shares for these so-called meme stocks slid as well, with GameStop and AMC down more than 4% and 15%, respectfully, at market close. And Reddit, another company that recently went public and has since been looped into meme stock frenzy comparisons, slumped nearly 7%.
Trump’s social media site had been seen as a potential financial lifeline for the Republican presidential nominee as he faces an onslaught of legal and financial challenges – as Trump Media’s move into the public market could also net the former president billions on paper.
However, there hasn’t been an immediate payout yet. In Monday’s filing, the company did not announce any changes to the provision that prevents insiders such as Trump from selling their shares for six months following its stock market debut. Still, some experts have speculated that the board might waive the provision for Trump and allow him to sell shares to help cover his legal bills.