Trump Media & Technology Group, the company behind former President Trump’s Truth Social, has reported a significant pre-tax loss of $327.6 million for the last quarter. This translates to a net loss of $3.61 per share for its shareholders. The revenue for the quarter ending March 31 was $770,500, down from $1.12 million in the same period last year.
The company’s focus remains on long-term product development rather than immediate revenue. Despite the financial losses, over 621,000 shareholders, mainly retail investors, hold Trump Media stock. CEO Devin Nunes emphasized the company’s commitment to its mission of promoting free speech against Big Tech censorship.
Earlier this month, Trump Media replaced its audit firm after the SEC permanently banned the previous firm for “massive fraud.” This change delayed the filing of its quarterly report. In an April 1 SEC filing, Trump Media disclosed it lacks the financial resources to sustain operations for a year, raising “substantial doubt” about its ability to continue. The company expects to continue incurring operating losses and negative cash flow for the foreseeable future.
Since its debut on Nasdaq on March 26, Trump Media’s stock has experienced extreme volatility, with significant fluctuations often without clear reasons. On Monday, the stock fell 5% to $48.38 per share and remained flat in pre-market trading on Tuesday.
Instead of a traditional IPO, Trump Media went public by merging with Digital World Acquisition Corp. (DWAC), a SPAC, following years of delays. Nunes announced the completion of the merger and the reduction of most merger-related costs, leaving the company well-capitalized.
Looking ahead, Trump Media is particularly excited about its forthcoming TV streaming platform, announced last month. The company has already signed contracts with a data center partner and a hardware vendor to support the project.
Disclaimer:
The information presented is based on publicly available sources and may not be fully comprehensive. The information contained in this article is for informational purposes only. It should not be considered financial or investment advice. Readers should conduct their own research before making any investment decisions.
