Donald Trump: Will Truth Social be his big loss?

Shares for Donald Trump's media company are plummeting. The company is in the red, but it is still a long way from bankruptcy. But all of this is already hitting Trump hard.

Donald Trump's media company was in the red last year: with sales of around four million dollars, the company lost a good $58 million. Just a week after the media company celebrated its IPO, the shares fell 21.5 percent after the figures were announced on Monday. This means that the value of Trump's stake in the Truth Social platform fell by more than a billion dollars from 4.88 billion to 3.83 billion. The company Trump Media admitted that it could be exposed to greater risks than other social media platforms “due to the focus of our offerings and the involvement of President Trump.”

However, an auditor told the British newspaper “Guardian” that the losses “raise significant doubts about the company's ability to continue as a going concern,” according to documents presented on Monday.

The figures published by the Trump Media & Technology Group (TMTG) on Monday at least show an improvement in revenue compared to just under $1.5 million in 2022. At that time, thanks to a tax credit, it still had an annual profit of $50.5 million given. The company operates Trump's social media network Truth Social.

Trump's company warns investors

After the figures were published, the share price temporarily fell by more than a fifth. But that's no reason for concern for the heads of the Trump company. “Today, Truth Social has no debt and over $200 million in the bank, which opens up numerous opportunities to expand and improve our platform,” Trump Media CEO Devin Nunes told the Guardian. Director Eric Swider described the company in a statement as a “unified, debt-free, publicly traded company.”

In fact, the company's shares rose significantly on their stock market debut last week and made Trump several billion richer, at least on paper.

At the same time, the numbers show that the service continues to struggle to attract advertising revenue. The company now warned that it could run out of money due to high losses in its ongoing business. It is a mandatory warning to investors that is common in the USA and is not necessarily followed by bankruptcy.