Trump's media firm experiences major financial setback.
Trump's Truth Social platform created a stir when it launched, with numerous Trump supporters flocking to the site. However, the excitement didn't translate into financial success, as revealed in the company's first quarter earnings report for 2024.
The parent company of Truth Social, Trump Media and Technology Group (TMTG), reported a massive loss of $328 million while generating only $770,500 in revenue for the same period. TMTG is the brainchild of former US President Donald Trump and recently went public, resulting in the release of their quarterly financial results.
As "meme stocks", the value of TMTG's shares is heavily influenced by public sentiment rather than the company's financial health or growth prospects. After being listed on the stock market on March 26, the share price soared before losing ground and then recovering somewhat.
Despite the losses, Trump continues to own 57.3% of TMTG's shares. As the largest shareholder, he must maintain his stake for a minimum of six months following the IPO. By the end of April, TMTG had garnered over 621,000 shareholders, the majority of whom are retail investors.
In a positive outlook, TMTG's CEO Devin Nunes, a former Republican congressman, stated that the company is well-funded. This allows them to consider and pursue various expansion strategies such as mergers and acquisitions, as well as exploring new opportunities like live TV streaming.
Truth Social was established by Trump in 2021 as an alternative to Twitter, which suspended his account for consistently promoting voter fraud claims following his election defeat to Joe Biden.
https://www.truthsocial.com/
Trump's 57.3% ownership stake in TMTG:https://www.cnbc.com/2022/06/06/donald-trump-owned-more-than-half-of-his-social-media-spac-before-ipo-filing.html
TMTG share price fluctuations:https://www.investopedia.com/terms/t/tmtg.asp
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The poor financial performance of TMTG, as evident in the quarterly figures, has not deterred retail investors from buying its shares, with over 621,000 shareholders by the end of April. Despite Donald Trump's 57.3% ownership of TMTG and the company's massive loss of $328 million, CEO Devin Nunes sees opportunities for expansion, citing potential mergers and acquisitions and Live TV streaming.
The share prices of TMTG, heavily influenced by public sentiment, saw a significant rise following its IPO on the stock market in March 2024, but eventually lost ground before recovering. Trump's Truth Social platform, launched as an alternative to Twitter, saw numerous supporters flock to it upon its launch, although this did not translate into significant financial gains for the company.
Source: www.ntv.de
