Trump Media & Technology Group Faces Steep Losses in 2023
NEW YORK — Shares of Truth Social owner Trump Media & Technology Group took a nosedive on Monday as the company revealed staggering losses of over $58 million and minimal revenue generation in 2023.
The figures paint a grim picture for Trump Media, with experts questioning the company’s multibillion-dollar valuation and drawing parallels to the meme stock craze.
In a regulatory filing, Trump Media disclosed a loss of $58.2 million in 2023, a sharp contrast to the $50.5 million profit recorded in the previous year.
Revenue for the Truth Social owner stood at just $4.1 million, showing a slight increase from $1.5 million in 2022. However, the fourth-quarter revenue plummeted by 39% to a meager $751,500, raising concerns among investors.
Following the release of these figures, Trump Media’s shares plummeted by 24% on Monday afternoon, despite a 200% increase in value since the beginning of the year.
The substantial losses have prompted Trump Media’s accountants to express doubts about the company’s sustainability, casting a shadow over its future prospects.
Despite the dire financial situation, Trump Media recently completed a long-awaited merger, injecting approximately $300 million in cash into the company. This influx of funds is expected to help alleviate debt and bolster infrastructure development.
While the company’s financial performance lags behind industry peers like X (formerly Twitter), which reported revenue of $665 million in 2013, Trump Media faces challenges with its flagship product, Truth Social, experiencing a decline in monthly active users.
With the 2024 presidential election looming, Trump Media’s fate hangs in the balance as it navigates a critical year ahead. The company’s ties to Trump-backed super PACs could prove to be a saving grace in the realm of digital advertising.
