Aitag Unal/ | Anadolu | getty images
stock trump media Truth Social fell more than 10% on Tuesday, a day after the app owner reported a net loss of $327.6 million on revenue of $770,500 for the first quarter of 2024.
Trump Media, majority owned by former President Donald Trump, revealed a loss in its first earnings report since its stock began trading publicly under the ticker DJT through a merger with a shell company in March.
The report said Trump Media’s losses were due to non-cash costs, including “conversion of promissory notes and related prior debt elimination” incurred prior to its merger with Digital World Acquisition Corp.
Trump Media said most of the shortfall in revenue came from “initial advertising initiatives.”
“At this early stage in the company’s development, TMTG remains focused on long-term product development rather than quarterly earnings,” the company said in its earnings report.
The company’s stock price has soared since it began public trading in late March. The stock hit a record high of more than $79 per share on its debut, then slumped for several weeks, wiping out most of its gains.
But the stock has partially recovered in recent weeks, hovering around $44 as of Tuesday morning.
Despite the company’s lack of revenue, its current market capitalization is around $6 billion.
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