In 2023, the financial results of Truth Social’s parent company, Trump Media & Technology Group (TMTG), were disclosed to the Securities and Exchange Commission. Despite minimal income and significant losses for the year, the stock market price of DJT symbolizing TMTG saw a substantial increase. However, this rise was short-lived as it experienced a dramatic decline on Monday.
During 2023, TMTG generated $4.1 million in revenue but incurred losses of $58.2 million largely due to interest payments on its debt. The non-active company seeking mergers or acquisitions, DWAC reported losses of $21.9 million. When combined in pro forma accounts, the joint result showed a net loss of $100.7 million on a revenue of $4.1 million.
Despite these financial struggles, Trump’s theoretical wealth was initially valued at over $8 billion with his ownership stake in TMTG contributing significantly to his fortune. However, the decline in share prices affected his fortune adversely as he is heavily invested in TMTG through additional shares contingent on meeting certain milestones. This uncertainty adds to the speculation about his actual wealth.
The market correction reflects the difference between the inflated stock price and TMTG’s underlying financial performance with no immediate prospects of profitability or dividend distribution leading to high market capitalization compared to other established media companies. Moreover, Trump’s six-month agreement prohibits him from selling shares further complicates the situation amidst ongoing legal and financial challenges.
Trump Media remains focused on its long-term strategy for growth and expansion despite questions about user engagement and revenue generation due to its unique approach to performance indicators and market evaluation that sets it apart from traditional social media companies reflecting Trump’s unconventional business style.
