Photo by Trump Media and Technology Group, the owner of social networking site Truth Social, has reported a staggering loss of over $300 million in the first quarter of this year. According to its first earnings report as a publicly traded company, the company posted a loss of $327.6 million, which includes $311 million in non-cash expenses related to its merger with Digital World Acquisition Corp.
Merger and acquisition
The company’s revenue for the quarter was a meager $770,500, largely generated from its nascent advertising initiative. This is a significant decline from $1.1 million in the same period last year.
“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” Trump Media said in its earnings news release.
Earlier this month, the company fired its auditor, BF Borgers, which was charged with “massive fraud” by federal regulators. This led to a delay in the filing of the quarterly earnings report.
Auditor fired
Trump Media had previously cycled through at least two other auditors, one of which resigned in July 2023, and another that was terminated by the board in March, just as it was re-hiring BF Borgers.
Shares of Trump Media climbed 36 cents to $48.74 in after-hours trading. The stock, which trades under the ticker symbol “DJT,” began trading on Nasdaq in March and peaked at nearly $80 in late March.
Stock performance
The company’s financial struggles come as no surprise, given the challenges it faces in the competitive social media landscape. However, Trump Media remains committed to its long-term goals, focusing on product development rather than short-term revenue gains.
Social media landscape
As the company navigates these challenges, one thing is clear: Trump Media and Technology Group is in for a wild ride.
Ride ahead
