Trump's Truth Social lost $58 million in 2023, and the stock is taking a hit
Shares of Trump Media & Technology Group (TMTG) plummeted by more than 23% on Monday after the parent company of former President Trump's Truth Social platform reported it lost nearly $60 million last year.
TMTG, which trades on the Nasdaq under the symbol "DJT," reported it brought in $4.1 million in revenue in 2023 but had an operating loss of more than $58 million.
The former president's social media company went public last week through a merger with the use of a special purpose acquisition company, Digital World Acquisition Corp. (DWAC).
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Retail buyers fueled the stock's surge in its March 26 debut, where it climbed to a market value of around $8 billion. But Monday's disclosure brought out sellers, sending the stock down $14.45, or 23%, to $47.51 on more than 14 million shares. It had closed at nearly $58 on its first day of trading.
"As of December 31, 2023 and 2022, management has substantial doubt that TMTG will have sufficient funds to meet its liabilities as they fall due, including liabilities related to promissory notes previously issued by TMTG," the company said.
Trump, the presumptive 2024 GOP presidential nominee, holds 78.7 million shares in TMTG. There is a six-month lock-up on Trump's shares, which the board could vote to waive. But the filing Monday showed the lock for Trump and other insiders is still in place.
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TMTG's CEO is Devin Nunes, who joined the company in December 2021 after retiring from nearly two decades in Congress. The SEC filing showed Nunes was paid a $750,000 salary last year.
Trump launched Truth Social in February 2022, a year after he was banned from platforms such as then-Twitter, now-X; Facebook; and Instagram, following Jan. 6, 2021. Those bans have been lifted.
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The Truth Social platform has some 8.9 million users signed up, according to company disclosures. TMTG's value following the declines Monday sat at around $6.3 billion.
FOX Business' Brooke Singman and Eric Revell, and Reuters contributed to this report.