Trump Media lost $327 million last quarter. It's still valued at more than $6 billion.
Business InsiderMay 29
Trump Media Reports $327M Net Loss
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The Facts
In its earnings report published on Monday, Truth Social parent company Trump Media & Technology Group (TMTG) showed it lost $327.6M and earned $770,500 in revenue from advertising in the first quarter of 2024.
Former US Pres. Donald Trump's company's revenue dipped from the $1.1M it took in during the first quarter a year ago. TMTG chalked up half of its $12.1M operating loss to costs related to its merger prior to going public.
The Spin
Pro-Trump narrative
TMTG is on the right track. The costs associated with its merger are in the rearview mirror, and the company is looking forward to adding a live TV streaming platform to its successful social media site, Truth Social. TMTG has a vast shareholder base led by legions of retail investors, and it'd be a great idea for others to get on board.
Anti-Trump narrative
This revenue report must raise questions about the multi-billion-dollar valuation of this company. That's unprecedented in a situation like this, as it seems to be based solely on investor trust that things will improve. Without TMTG releasing user metrics, this report gives little reason to believe the company will turn the corner.