https://www.washingtonpost.com/technology/2024/04/01/truth-social-trump-media-results/

Trump Media stock plunges as 2023 Truth Social loss put at $58 million

Former president Donald Trump’s social media company said Monday it lost more than $58 million last year, sending its stock plunging roughly 25 percent only days after a highflying public debut valued it at more than $8 billion.

Trump Media & Technology Group, which owns Truth Social, said in a new Securities and Exchange Commission filing Monday that the company generated just over $4 million in revenue last year, including less than $1 million in the last quarter of 2023.

The nosediving share price of the company — which uses the stock ticker DJT, for Trump’s initials — shaved off a quarter of its market value in a single day. It also slashed the value of Trump’s 57 percent ownership in the company by roughly $1 billion, to $3.6 billion.

The new financial figures throw into stark relief the gap between Trump Media’s highly hyped investor-driven valuation on the public stock market and the reality of its business performance.

It also raises questions about the possibility that Trump could use the company as a financial lifeline. Trump cannot sell his shares or use them as collateral for a loan for six months due to a provision in the company’s merger agreement, known as a lockup.
The company’s board could vote to waive that requirement but has yet to do so, the filings state. Cashing out early could sink the stock price further by flooding the market with shares and undermining investor confidence in Trump’s commitment to the brand, financial analysts said.

Trump, who invested no money in Trump Media, was given 78 million shares of the company last week and stands to earn tens of millions more over the next three years if the stock stays above $12 to $17, a filing shows.