Trump Media & Technology Group, parent to Donald Trump’s Truth Social platform, revealed a staggering net loss of $327.6 million against a meager total revenue of $770,500 in its first-quarter earnings report filed with the Securities and Exchange Commission. These numbers shed light on the true financial standing of the company, which made its public debut on the Nasdaq stock exchange in March through a merger with Digital World Acquisition Corp.
Despite this dismal performance, TMTG boasts a valuation of $6.61 billion as of today, a figure that seems grossly inflated given its substantial losses.
Post-market trading saw DJT shares barely budging after the earnings report’s release, which had remained under the radar until then. However, the stock plummeted by 5% at market close, settling at a share price of $48. Since its IPO, DJT stock has exhibited erratic behavior, exhibiting traits typical of meme stocks, with wild fluctuations lacking any significant news catalyst.
TMTG CEO Devin Nunes attempted to instill optimism, highlighting the company’s plans to expand the Truth Social platform through various initiatives, including potential mergers and acquisitions. Nunes expressed particular enthusiasm for the development of a live TV streaming feature, which TMTG aims to achieve by establishing its content delivery network.
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The announcement in April outlined Truth Social’s ambitious plan to launch a TV streaming platform in three phases, catering to a wide range of devices from mobile phones to home televisions. TMTG has taken initial steps towards this goal by securing contracts with a data center partner and a hardware vendor to facilitate the platform’s infrastructure.
However, the company’s credibility faces scrutiny after it postponed its quarterly filing due to revelations about its former auditor, BF Borgers CPA, who faced accusations of “massive fraud” involving numerous companies. This development raises serious doubts about the accuracy of the financial information audited by the firm, casting a shadow over TMTG’s already dubious financial performance.
