Warning for investors
Big-loss media company: Trump’s Truth Social shares lose $1 billion in value
The losses are greater than the sales: Donald Trump loses over a billion dollars
© Jonathan Raa / NurPhoto / Imago Images
Shares for Donald Trump’s media company are plummeting. The company is in the red, but it is still a long way from bankruptcy. But all of this is already hitting Trump hard.
An auditor said that British newspaper “Guardian” against the fact that the losses “raise considerable doubts about the continuation of the company,” according to documents presented on Monday.
The figures published by the Trump Media & Technology Group (TMTG) on Monday at least show an improvement in revenue compared to just under $1.5 million in 2022. At that time, thanks to a tax credit, it still had an annual profit of $50.5 million given. The company operates Trump’s social media network Truth Social.
Trump’s company warns investors
After the figures were published, the share price temporarily fell by more than a fifth. But that’s no reason for concern for the heads of the Trump company. “Today, Truth Social has no debt and over $200 million in the bank, which opens up numerous opportunities to expand and improve our platform,” Trump Media CEO Devin Nunes told the Guardian. Director Eric Swider described the company in a statement as a “unified, debt-free, publicly traded company.”
In fact, the company’s shares rose significantly on their stock market debut last week and made Trump several billion richer, at least on paper.
At the same time, the numbers show that the service continues to struggle to attract advertising revenue. The company now warned that it could run out of money due to high losses in its ongoing business. It is a mandatory warning to investors that is common in the USA and is not necessarily followed by bankruptcy.