In 2023, Trump’s media company faced a $58 million loss

In 2023, Trump’s media company faced a $58 million loss

Trump Media & Technology Group, the owner of Truth Social, reported a significant loss of over $58 million and minimal revenue in 2023. These figures have raised concerns among experts who question the company’s multibillion-dollar valuation, likening it to the meme stock craze.

According to a regulatory filing on Monday, Trump Media incurred a loss of $58.2 million in 2023, a sharp decline from the $50.5 million profit in 2022. The company generated only $4.1 million in revenue, although this was an increase from $1.5 million in 2022.

The substantial losses have led Trump Media’s accountants to express doubts about the company’s ability to continue as a going concern, indicating potential financial instability. This warning has been reiterated multiple times, emphasizing the urgency of completing its merger to go public.

Despite the financial struggles, Trump Media recently completed a long-delayed merger, securing approximately $300 million in cash. However, this development did not prevent a sharp decline in Trump Media’s stock value, which dropped more than 15% following the latest filings.

While Trump Media lags behind in revenue generation, its competitor X (formerly Twitter) reported over $665 million in revenue in 2013, highlighting the stark contrast between the two companies. Truth Social, the main product of Trump Media, is also facing challenges with a significant decline in monthly active US users on iOS and Android.

In February, the number of users dropped by 51% year-over-year to 494,000, significantly lower than X’s 75 million monthly active US users. Even Threads, another platform, has more than ten times the number of users compared to Truth Social. These challenges present a significant obstacle for Trump Media’s growth and profitability.

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