How Trumps Social Media Company Lost $58 Million
Less than a week after a flashy stock market debut, Donald Trump's social media company recently disclosed that it lost nearly $58.2 million last year, sending its stock tumbling more than 21%.
Losses 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 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 in 2023, the SEC filing shows, although that's up from $1.5 million in 2022.
After merging with a blank-check company called Digital World Acquisition Corp., Trump Media began trading March 26 on the Nasdaq stock market under 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 fervor around Florida-based Trump Media to the meme stock craze, which notably boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.
