Donald Trump’s media company posted a $327.6 million first-quarter loss this week, driving Trump Media and Technology Group stock down in recent days.
Since Friday’s market closing, TMTG, the parent company of the former president’s Truth Social website, has seen its share price fall 13.2% to $44.19.
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According to an investigation by The Independent, the former president, who purportedly owns 114 million shares in TMTG, lost around $766 million as a result of the price drop.
“At this early stage in the company’s development, TMTG remains focused on long-term product development rather than quarterly revenue,” the business stated on Monday.
According to company officials, the first-quarter results reflect the challenges of a March merger with Digital World Acquisition Corporation, a special purpose acquisition company that enabled the Trump media conglomerate to go public through a merger.
“After an unprecedented, years-long process, we have consummated our merger and dispensed with the vast bulk of merger-related expenses, leaving the company well-capitalized and supported by a legion of retail shareholders who believe in our mission to provide a free-speech beachhead against Big Tech censorship,” Trump Media and Technology Group Corp. CEO Devin Nunes said in a statement about the earnings results.
Despite having revenues of less than $1 million and an active US mobile user base of less than 100,000 people, the company is valued at more than $7 billion, similar to a huge software company, despite rivals such as X having hundreds of millions of users.
Donald Trump has benefited and suffered from his strong relationship with the corporation.
The previous president, as the primary owner, received a stock incentive of around $1.8 billion as a result of the company’s share price performance.
However, Trump Media’s stock price dropped nearly 20% on the first day of Mr. Trump’s hush money trial in April.
Mr. Trump will not be able to cash in his shares until September, six months after the company went public.
