Trump's DJT stock plunged after posting a big loss in 2023

Trump's DJT stock plunged after posting a big loss in 2023

New York

Shares Truth Social's owner, Trump Media & Technology Group, collapsed on Monday, with the company losing more than $58 million and posting the lowest revenue in 2023.

Some experts say the statistics underscore that the multibillion-dollar valuation of Trump media defies logic and is reminiscent of a meme stock craze.

In a regulation 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, though that's expected to grow to $1.5 million in 2022.

Not only that, but revenue fell 39% year over year in the fourth quarter to just $751,500. Investors don't like to watch out for any startup, especially one valued at these levels.

Shares of Trump Media plunged 24% Monday afternoon following the new filings, though they are up nearly 200% so far this year.

The losses are so severe, Trump Media's accountants warned, that it “raises substantial doubt about its ability to continue as a going concern,” which Wall Street: We may not be able to stay in business. That warning echoes one made in November, when accountants said Trump Media would not survive unless it went public soon.

That long-delayed deal was finalized last week, paving the way for Trump Media to receive about $300 million in cash. The company can now use those funds to pay down debt and essentially build its infrastructure.

“I believe the $300 million in cash should eliminate this 'going concern' risk,” said Matthew Kennedy, senior IPO strategist at Renaissance Capital.

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While Trump Media is losing money and making less revenue, Wall Street is That valued it at $11 billion, based on the stock's closing price on Friday, according to Renaissance Capital.

Trump Media generated just $4.1 million in revenue in 2023, while rival X (formerly known as Twitter) generated more than 100 times that — $665 million. 2013Ahead of its initial public offering in November 2013. Twitter also made quite a bit more $5 billion in revenue In the final year it was taken private by Elon Musk.

The problem with Trump Media is that its core product — Truth Social — is shrinking.

According to Similarweb, monthly active US users on iOS and Android fell 51% to 494,000 in February. By comparison, X has 75 million monthly active US users. According to Similarweb, Threads also has 10 times more users than Truth Social.

“2024 is a make-or-break year for this company,” Kennedy said. “The important thing for TMTG now is to face the money cannon that is the 2024 presidential election. And the company has a significant advantage. Trump-backed super PACs have raised millions. Where do you think they'll spend their digital ad buckets?


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