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This photo illustration shows Republican presidential candidate former President Donald Trump's social media platform Truth Social on a cell phone on March 25, 2024 in Chicago, Illinois.
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CNN
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Trump Media & Technology Group, the owner of Truth Social, disclosed on Monday that it lost more than $58 million in 2023 and had little revenue.
The numbers highlight why some experts are warning that Trump Media's multibillion-dollar valuation defies logic and is reminiscent of the meme stock boom.
Trump Media said in a regulatory filing Monday that it had a loss of $58.2 million in 2023, compared to a profit of $50.5 million in 2022.
The Truth Social owner posted revenue of just $4.1 million, up from $1.5 million in 2022.
The losses have been so severe that Trump Media's treasurer has warned that “its ability to continue as a going concern is in serious doubt,” and that's what Wall Street thinks. “We may not be able to continue doing business.” The warning echoes a warning from accountants in November that Trump Media may not be able to survive unless it quickly completes its merger and goes public.
The long-delayed deal was completed last week, clearing the way for Trump Media to receive about $300 million in cash.
Trump Media stock fell more than 22% on Monday following the new filing.
Even though Trump Media is losing money and making little money, Wall Street Renaissance Capital said it valued the company at up to $11 billion based on Friday's closing price.
Trump Media's 2023 revenue was just $4.1 million, while Rival I earned it. Twitter also posted slightly higher revenue. It had $5 billion in revenue in its final year before being taken private by Elon Musk.
The problem for Trump Media is that its main product, “Truth Social,” is shrinking.
Monthly active users of iOS and Android in the U.S. plummeted to 494,000 in February, a 51% drop from a year ago, according to SimilarWeb. By comparison, X has 75 million monthly active users in the US. According to Samelweb, even Threads has 10 times more users than Truth Social.
