Trump Media Stock Plunges More Than 20% After Company Reports $58M Loss for 2023
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Key Takeaways
- Shares of Trump Media & Technology Group plunged Monday after the parent company of former President Donald Trump’s Truth Social site reported a loss of $58.2 million in 2023.
- The company said it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”
- Trump Media began trading last week after going public through a Special Purpose Acquisition Company.
Shares of Trump Media & Technology Group (DJT) lost more than one-fifth of their value Monday after the parent company of former President Donald Trump’s Truth Social site reported a loss of $58.2 million in 2023, versus a profit of $50.5 million the previous year.
Revenue increased to $4.13 million from $1.47 million in 2022, but as of the end of 2023, the company had just $2.6 million of cash on hand, the company said.
Trump Media said it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers.”
Trump Media began trading last week after going public through a Special Purpose Acquisition Company (SPAC). Shares had soared in its debut, reaching nearly $80 apiece before finishing the week at $61.96 per share.
The stock finished Monday at $48.66, a 21.5% decline from Friday. Shares fell as low as $45.26 during Monday’s session.
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UPDATE: This article has been updated with closing share price information.
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