Company behind Trump's online network Truth Social makes millions in losses

Trump Media and Technology Group (TMTG), the company behind the online network Truth Social founded by former US President Donald Trump, reported a loss of $328 million in the first quarter of 2024. Revenue was only $770,500, TMTG announced on Monday. Trump recently took the company public, which is why it now has to disclose its quarterly figures.

Some experts refer to TMTG's shares as “meme stocks,” whose prices are determined primarily by public support rather than by a company's financial situation or vision. TMTG's share price initially shot up after it went public on March 26, then plummeted massively and has since recovered slightly.

Trump has held 57.3 percent of TMTG's shares since the IPO. As the majority shareholder, he must hold onto his equity for at least six months after the IPO. According to the quarterly report, the company's shares were “held by over 621,000 shareholders, the vast majority of whom are retail investors” at the end of April.

TMTG CEO Devin Nunes, a former congressman from Trump's Republican party, said the company is “well capitalized.” “Our positive working capital allows us to explore and pursue a wide range of initiatives and innovations to grow the Truth Social platform, including potential mergers and acquisitions,” as well as new business opportunities such as live TV streaming.

Trump founded Truth Social in 2021 after his Twitter account was suspended for continuing to spread misinformation about alleged election fraud in his loss to Joe Biden.