Just days after going public, Donald Trump’s social media company ‘Trump Media’ saw shares plummet by 21% on Monday (Apr 1) after last year’s losses were revealed.
According to new SEC filings, Trump Media & Technology Group reported it had lost over $58 million last year and only brought in revenue of $4 million.
This comes as a stark contrast from when the stock surged in its March 26 debut to close at nearly $58 a share, giving the company an $11bn valuation, despite the company only reporting around $4 million in revenue last year.
The initial surge and excitement around the shares is believed to have come from the former President’s supporters, but this has quickly lost momentum.
Truth Social, launched in February 2022, is described on its website as ‘America’s Big Tent’ social media platform that encourages an open, free, and honest global conversation without discriminating on the basis of political ideology.’
The 45th U.S. President’s stake in the company was worth about $4.88bn after its debut. Then, after the sell-off, it was valued at around $3.83bn. He’s not able to sell or borrow against any of his shares for six months.
There were rumors that Mr Trump had spoken with the world’s richest man, Elon Musk, to gauge if he would be interested in purchasing Truth Social.
Donald Trump’s difficulties on social media
The social media site was announced after Trump experienced difficulties sharing his thoughts online, with major players in the market banning his accounts for some time.
Following the attack on the US Capitol in January 2021, Facebook and Instagram banned his accounts for two years.
Twitter permanently suspended his @realDonaldTrump handle and the official account of his campaign, as well as the accounts of allies who posted on his behalf. When Elon Musk bought Twitter, now X, he reinstated the banned accounts.
Donald Trump now mainly shares his posts on his platform Truth Social.
Featured Image: Photo by Tim Gouw on Unsplash
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