Truth Social loses $4 billion in value in one week

Page 1 of 1 [ 6 posts ] 

ASPartOfMe
Veteran
Veteran

User avatar

Joined: 25 Aug 2013
Age: 66
Gender: Male
Posts: 34,773
Location: Long Island, New York

01 Apr 2024, 6:54 pm

Trump's Truth Social loses $4 billion in value in one week, while revealing wider loss

Quote:
Former President Donald Trump's fledgling media business is losing its sheen among investors a week after going public, with a sharp reversal in the company's stock price lopping $4 billion off its value.

The plunge in Trump Media & Technology Group's shares, which debuted on the Nasdaq Composite Index on March 25 under the ticker "DJT" (after the former president's initials), comes as it disclosed mounting losses in a regulatory filing. The company also noted that its accountant had issued a warning that its losses "raise substantial doubt about its ability to continue as a going concern."

Shares of Trump Media & Technology Group, whose primary asset is the Truth Social platform, tumbled $13.30, or 21%, to $48.66 on Monday. That's below its opening price last Monday of $49.90 per share, and represents a 39% plunge from the stock's high of $79.38 on March 26.

Still, the stock remains higher than before a deal that took Trump's media company public last week. The shares had previously traded under the name Digital World Acquisition Corp., a shell company designed to take Truth Social public. Even after Monday's dip, the stock has surged 178% this year.

Trump, who owns 57% of the newly public company, has lost $2.5 billion — at least on paper — because of the stock slide. His stake is now worth $3.8 billion, down from $6.3 billion at the stock's peak last week

Former President Donald Trump's fledgling media business is losing its sheen among investors a week after going public, with a sharp reversal in the company's stock price lopping $4 billion off its value.

The plunge in Trump Media & Technology Group's shares, which debuted on the Nasdaq Composite Index on March 25 under the ticker "DJT" (after the former president's initials), comes as it disclosed mounting losses in a regulatory filing. The company also noted that its accountant had issued a warning that its losses "raise substantial doubt about its ability to continue as a going concern."

Shares of Trump Media & Technology Group, whose primary asset is the Truth Social platform, tumbled $13.30, or 21%, to $48.66 on Monday. That's below its opening price last Monday of $49.90 per share, and represents a 39% plunge from the stock's high of $79.38 on March 26.

Still, the stock remains higher than before a deal that took Trump's media company public last week. The shares had previously traded under the name Digital World Acquisition Corp., a shell company designed to take Truth Social public. Even after Monday's dip, the stock has surged 178% this year.

Trump, who owns 57% of the newly public company, has lost $2.5 billion — at least on paper — because of the stock slide. His stake is now worth $3.8 billion, down from $6.3 billion at the stock's peak last week.

Trump Media & Technology Group on Monday disclosed more details about its finances. The company booked $4.1 million in revenue last year, compared with $1.5 million in the year-earlier period. It also posted a loss of $58 million in 2023, compared with a profit of $50 million in the prior year.

Additionally, it noted that its accountant flagged that the company's losses raise doubts about its ability to continue operating. Such a warning, however, reflects the company's current situation; the company could grow its user base, revenue and reverse its losses, putting it on a more stable path.

Trump's stake locked up
Trump stands to make billions from his majority stake in Truth Social's parent company, a windfall that comes at an opportune time for the former president given mounting financial pressures.

Even so, Trump is unable to access the stock, at least for now. That's because Trump and other company executives are subject to a so-called "lock-up" provision that bars them from selling the stock for at least six months. Such provisions are common in IPOs as a way to keep insiders from dumping shares immediately after a company goes public.


_________________
Professionally Identified and joined WP August 26, 2013
DSM 5: Autism Spectrum Disorder, DSM IV: Aspergers Moderate Severity

“My autism is not a superpower. It also isn’t some kind of god-forsaken, endless fountain of suffering inflicted on my family. It’s just part of who I am as a person”. - Sara Luterman


Fnord
Veteran
Veteran

User avatar

Joined: 6 May 2008
Age: 67
Gender: Male
Posts: 60,305
Location: Stendec

01 Apr 2024, 7:12 pm

Dear Mr. Trump,

This song is for you.

Image

Sincerely,
Fnord


_________________
 
No love for Hamas, Hezbollah, Iranian Leadership, Islamic Jihad, other Islamic terrorist groups, OR their supporters and sympathizers.


blitzkrieg
Veteran
Veteran

User avatar

Joined: 8 Jun 2011
Age: 35
Gender: Male
Posts: 16,787
Location: United Kingdom

02 Apr 2024, 9:42 am

I am surprised there is $4 billion worth of value to be lost in the first place for this platform.



naturalplastic
Veteran
Veteran

User avatar

Joined: 26 Aug 2010
Age: 69
Gender: Male
Posts: 34,731
Location: temperate zone

02 Apr 2024, 5:53 pm

It IS surprising. Truth social pulls less than five MILLION (not billion) in revenue each year, and has yet to turn a profit.

It did enjoy an upward spike when it first went public, but now its going the other way.



Double Retired
Veteran
Veteran

User avatar

Joined: 31 Jul 2020
Age: 69
Gender: Male
Posts: 5,579
Location: U.S.A.         (Mid-Atlantic)

03 Apr 2024, 11:25 am

So...does that mean Trump can declare a huge financial loss that will benefit him in his income taxes?


_________________
When diagnosed I bought champagne!
I finally knew why people were strange.


goldfish21
Veteran
Veteran

User avatar

Joined: 17 Feb 2013
Age: 41
Gender: Male
Posts: 22,612
Location: Vancouver, BC, Canada

06 Apr 2024, 3:35 am

It was never worth s**t. The entire thing is pump and dump scam to rip off morons. A couple of the founders have already plead guilty to insider trading.

I don't think he can claim a tax loss because he didn't Pay Billions for his shares and then have them plummet. But I'm not sure how US tax laws work if someone assigns a pie in the sky BS value to a stock that they give someone as compensation and then it tanks.

The whole thing isn't worth a n y money. It lost $58M last year. No business that loses $58M/year is worth Billions. It's all just to scam more money from trump's cult members who will go all in buying whatever he tells them to buy.. useless NFT's, bibles he endorses, shares in his next scam company.. he's just parting fools from their money IF he can get them to hand it over.

If only we'd have known this meme stock would tank so fast we could have shorted it. Oh well.


_________________
No :heart: for supporting trump. Because doing so is deplorable.