Is This Your Business King? Trump’s ‘Truth Social’ Platform Causes Trump Media Stock To Plummet
Source: The Washington Post / Getty
In late 2021, Donald Trump and Trump Media & Technology Group (TMTG) announced the company would be launching the former president’s Truth Social platform. It was supposed to be the future of conservative social media—a digital gathering place for right-wingers to spread white nationalist nonsense in a white nationalist echo chamber without getting banned like on other platforms, or as Trump Media put it, the platform would “stand up to the tyranny of big tech.”
Well, it appears that all Truth Social has done for the company is cause its stock to plummet because it turns out the social media brainchild of the guy MAGA minions purportedly elected because he’s such a savvy businessman is an absolute revenue killer.
According to CNN, TMTG shares plunged Monday after the company disclosed that it lost more than $58 million and that its revenue numbers from last year were quite pitiful.
From CNN:
In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.
The Truth Social owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.
Not only that, but revenue tumbled 39% year-over-year in the fourth quarter to just $751,500. That’s not what investors want to see from any start-up, especially one valued at these levels.
Shares of Trump Media tumbled 21% Monday following the new filings, though they are still up nearly 200% so far this year.
Former President Donald Trump owns a commanding stake of 78.8 million shares in the newly public company. At Monday afternoon’s prices, that stake is now worth approximately about $3.8 billion. This represents a massive boost to Trump’s net worth, though it is down significantly from a peak of about $6.3 billion just last week.
Isn’t it interesting how mega-rich people and companies can lose the kind of money that could boost entire economies and yet they still remain mega-rich? Actually, the only thing interesting about that is that folks still think poor people on welfare are the problem.
In fact, Trump Media’s accountants warned that the losses disclosed Monday “raise substantial doubt about its ability to continue as a going concern,” meaning the company might not be in business for much longer. (I know, the horror.) The accountants issued the same kind of warning last November when they said the company might not survive unless its merger to go public was soon completed, which happened last week, and, according to CNN, paved “the way for Trump Media to receive an influx of approximately $300 million in cash.” (Seriously, these welfare queens are ruining America.)
More from CNN:
Even though Trump Media is losing money and generating scant revenue, Wall Street hasvalued the company by as much as $11 billion based on the stock’s closing price Friday, according to Renaissance Capital. By Monday afternoon, that valuation tumbled to about $8.8 billion
While Trump Media made just $4.1 million in revenue in 2023, rival X (formerly known as Twitter) raked in more than 100 times that much — $665 million — in 2013, ahead of its initial public offering in November 2013. Twitter also generated just over $5 billion in revenue in the final year before it was taken private by Elon Musk.
In fact, Truth Social’s financials are comparable to that of The Messenger, the upstart digital news outlet that imploded earlier this year.
Maybe this is why Trump is out here slanging $60 Bibles to the world’s most gullible “Christians” and charging $400 for the ugliest pair of sneakers imaginable. Maybe that’s why he’s begging his supporters for money to avoid his assets being seized because he couldn’t afford the $464 million bill to pay his bond in the New York civil fraud case against him. (He actually posted bond Monday after an appeals court dropped the amount down to $175 million, because, again, the mega-rich get bailed out while conservatives rain down fire and brimstone on people who need food stamps to eat regularly.)
Nah, none of that could be true. Trump’s business sense is yuge! He has the best business sense…maybe in history. He has the best businesses. They’re so rich—they make so much money, let me tell you. So much revenue—more than anybody since Rockefeller, or maybe even Jay-Z. He’s the best at business and money and TRUTH. He’s great. He makes America great again. Bigly great!
SEE ALSO:
RFK Jr. Says Joe Biden Is A Bigger Threat To Democracy Than Donald Trump. Here’s Why He’s Wrong
