After investors saw the performance numbers of Truth Social, the stock value dropped sharply.
Trump Media's stock price took a big fall on Monday as the company, connected to former President Donald Trump, reported a net loss of $58.2 million on revenue of only $4.1 million in 2023.
Shares of Trump Media & Technology Group dropped by more than 25% around 1:08 p.m. ET.
….
The company expects to continue facing financial losses in the future, given the losses incurred in the last year and its association with the Truth Social app, frequently used by the former president.
The company filing mentioned, “TMTG expects to incur operating losses for the foreseeable future,” and this update came a week after the company began trading on the Nasdaq as DJT.
A 25% decrease in the stock value means a 25% decrease in Trump’s investment. Some believe that Truth Social is deceptive and designed to extract money from Trump's supporters, as the company has not disclosed its user data and is seen as a financial burden.
As discussed by John Oliver in the recent Last Week Tonight episode, it's possible that Trump may hold onto his stock shares to potentially gain money from foreign governments and exploit his presidential status if he returns to power.
Truth Social is seen as a fraudulent venture associated with Trump, and it's likely that his supporters will bear the financial consequences.
