Trump Social Hit Hard

(5MinNewsBreak.com) – In a shocking turn of events after successfully merging his social media venture with another company, Trump Media & Technology Group’s stock value suffered a major 21.47% dip.

Stocks fell following the disclosure of a substantial net loss of $58.2 million against a modest revenue of $4.1 million for the year 2023.

This downturn occurred after the company’s shares initially soared after becoming publicly traded, which marks a sharp contrast from its previous week’s performance.

The closing market price of Trump Media was $48.66 per share, a steep decline from its previous peak of around $80. This plunge affected former President Donald Trump’s shares’ worth in the company, as it reduced his holdings by approximately $2.5 billion from last week’s value to $3.8 billion.

In its first 8-K filing with the Securities and Exchange Commission (SEC) after its public listing Trump Media revealed its financial results for 2023, which showed that a significant portion of its net loss was due to interest expenses.

Trump Media CEO Devin Nunes remained optimistic and commended the company’s feats, saying, “Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform.”

Despite a profitable 2022 due to changes in the valuation of derivative liabilities Trump Media expects ongoing operational losses, as disclosed in their recent SEC filing. This disclosure comes with warnings about potential risks associated with Trump’s involvement and identified problems in the company’s internal financial controls.

Trump, who owns a majority stake in the company, could receive additional shares if the company meets certain price benchmarks over the next three years. The surge in Trump Media’s stock value after it went public can be linked to eager purchases by Trump’s supporters, which in itself presents unique challenges.

However, a new 10-K filing reveals that Trump’s involvement shapes public perception and the company’s operational success but also introduces potential vulnerabilities due to legal proceedings against him.

“TMTG’s success depends in part on the popularity of its brand and the reputation and popularity of President Trump,” the filing said. “Adverse reactions to publicity relating to President Trump, or the loss of his services, could adversely affect TMTG’s revenues and results of operations.”

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