Truth Social barely makes any sales
Trump’s media company reports horrendous losses
May 21, 2024, 11:20 a.m
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Former US President Trump initially caused a sensation with his social network Truth Social. When the company behind it goes public, hundreds of thousands of Trump fans strike. However, the interest is not reflected in sales, as the quarterly figures presented show – on the contrary.
Trump Media and Technology Group (TMTG), the company behind the online network Truth Social founded by former US President Donald Trump, reported a loss of $328 million in the first quarter of 2024. Sales were just $770,500, TMTG announced on Monday. Trump recently took the company public, which is why it now has to disclose its quarterly figures.
Some experts refer to TMTG’s stocks as “meme stocks,” whose prices are determined primarily by popular support rather than a company’s financial health or vision. The price of TMTG initially skyrocketed after the stock market opened on March 26th, then crashed massively and has now recovered slightly.
Trump has held 57.3 percent of TMTG’s shares since the IPO. As the majority shareholder, he must hold onto his equity for at least six months after the IPO. According to the quarterly report, the company’s shares were “held by over 621,000 shareholders, the vast majority of whom are retail investors” at the end of April.
TMTG CEO Devin Nunes, a former congressman from Trump’s Republican Party, said the company was “well capitalized.” “Our positive working capital allows us to explore and pursue a broad range of initiatives and innovations to grow the Truth Social platform, including potential mergers and acquisitions,” as well as new business opportunities such as live TV streaming.
Trump founded Truth Social in 2021 after his Twitter account was suspended due to the continued spread of misinformation about alleged election fraud in his loss to Joe Biden.