Donald Trump’s social media venture is taking a serious dive, according to its first earnings report.
Trump Media and Technology Group, which owns Truth Social, lost about $327.6 million last quarter ending March 31. These losses include $311 million in noncash expenses from the company’s merger with Digital World.
The company only brought in about $770,500 in revenue, down from $1.1 million the year before. The report had been delayed after the company fired its auditor, BF Borgers, who was charged with “massive fraud” by the Securities and Exchange Commission earlier this month. The company has had at least two other auditors in its short existence: one that resigned in July 2023 and another that was terminated in March to hire BF Borgers.
The company is currently trading at $48 per share, down from its peak of nearly $72 during its initial public offering in March. That’s a loss of more than half the company’s value. It had a bad run of news, even reaching out to the federal government to figure out why the stock has performed so poorly. Trump Media’s CEO, former Representative Devin Nunes, even complained to NASDAQ’s CEO that the company was the victim of illegal “naked short selling”—leading to his brutal mocking on Wall Street. Two of the company’s top investors were also charged with insider trading in April.
As a result of the company’s losses and his own financial difficulties, Trump himself has been kicked off the Bloomberg Billionaires Index, a daily ranking of the 500 richest people in the world. He also has to be careful about his usual bragging, as the SEC could see it as an attempt to pump up the company’s stock. And Trump can’t sell off any of that stock for six months without board approval, a difficult prospect considering his hefty legal bills.
Source Agencies
