Trump Media reports $16 million loss for quarter as revenue falls

[BlueWavePsych]

Trump Media, the social media company whose majority shareholder is former President Donald Trump, on Friday reported a net loss of more than $16 million for the most recent financial quarter, mostly due to legal expenses, as well as consulting and licensing expenses.

Trump Media, which owns the Truth Social app often used by the former president, also reported that its already meager revenue dropped by 30% for the three months that ended June 30, compared to the same period last year.

The stock price of Trump Media, which trades under the DJT ticker, has fallen sharply from a high of more than $71 per share shortly after began publicly trading in late March following a merger with a so-called special purpose acquisition corporation. Trump Media stock closed at $26.21 per share Friday afternoon, a decrease of .49%.

The company has a market capitalization of nearly $5 billion, an extraordinarily high valuation given its very modest sales.

https://www.nbcnews.com/business/business-news/trump-media-reports-16-million-loss-quarter-revenue-falls-rcna166048

Still lots of room to short this POS. TIMBERRRRRRRRR ...

[Kid Berwyn]

1. Value Evaporator

$26.21 represents opportunities for everyone except the saps who bought shares to show support for pisswig and couchfluffer. It brings joy, the drop to penny stock levels.

[BlueWavePsych]

4. Lots of profit (short) to be made from $26 down to ZERO

[marble falls]

2. Milania stuck another pin in her Donnie Doll and then tapped another carton of chard.

?si=3xrfeWwqqYZePRjq

[newdeal2]

3. When is Elon buying this junk and merging it with X?

[Diraven]

5. It has a long way to fall yet

He'd be an idiot to pay $5 billion.

[newdeal2]

6. How much did he pay for Twitter again?

It’s going to be a long time before he recoups that money. But it was worth it to him to have control over a platform.

[Happy Hoosier]

11. He'd do it though.

He's proven himself perfectly willing to torch billions to Own the Libs.

[Mr. Sparkle]

7. The stock price and valuation does not match the financial performance of that company

not even close.

I have to think there is some kind of money laundering going on.

[LetMyPeopleVote]

8. Trump Media reports $16.4 million quarterly loss

Trump Media spent more in legal fees than its revenues

Link to tweet

https://www.washingtonpost.com/technology/2024/08/09/trump-media-loss-quarter/

Former president Donald Trump’s social media company Trump Media reported a $16.4 million loss and less than $1 million of quarterly revenue, showing that the business’s financials remain tentative following a public debut earlier this year.

Trump Media and Technology Group, which owns the social media platform Truth Social, said Friday the company earned $837,000 in revenue for the second quarter, while shelling out millions of dollars of legal expenses associated with its stock market listing.

Trump has relied heavily on Truth Social in his presidential campaign, where he posts frequently to his 7.5 million followers. He began using the platform after his Twitter account was suspended in 2021.

The poor financial results, laid out in a filing to the Securities and Exchange Commission, don’t come as a surprise. In April, Trump Media said it lost more than $58 million last year, sending its stock plunging more than 21 percent in one day. The company flagged then that more losses might be ahead as it sought to expand its user base.

[malaise]

9. Get thee to the greatest page

Last edited Sat Aug 10, 2024, 06:50 PM - Edit history (1)

The end is nigh

[PeaceWave]

10. Being fair, there is more to the story...

As much as I dislike Trump and the DJT stock, there actually are some signs of improvement:

Losses per share declined to 10 cents in the quarter compared to 26 cents per share in the year-ago period. Also, cash equivalents were $344 million, up from $2.6 million a year ago. Finally, it is claimed that the company carries “no debt.”

The real news, of course, is that Trump is the largest shareholder with almost 115 million shares (around 60% of all shares) - which are, at the current price, worth approximately $3 billion. The six-month lockup period, during which Trump cannot sell those shares, expires in late September. Once he starts selling, DJT's price per share is widely expected to nose dive. Nevertheless, this single grift is probably going to double Trump's net worth.

https://www.barrons.com/articles/trump-media-truth-social-djt-stock-price-earnings-aa688ad4

[Happy Hoosier]

12. The fact that company has managed to get a bunch of suckers to pony up bucks....

in no way means that the company is improving. Revenues plummeted. They don't have a viable path to profitability.

[ProfessorGAC]

14. Sorry, But That Makes No Sense

That per share loss has to be an accounting maneuver, because absent massive cost reductions like layoffs, losses can't improve when revenues fall.
The reality is that the quarter ending March 31 included a $300 million dollar one time expense from the merger cost.
So, the losses per share were much worse because of that one time expense.
Revenues dropping is not a sign of improvement.

[ProfessorGAC]

13. Gee, Im Surprised

After that great track record of business success, who could have predicted this?

[Mysterian]

15. The rubes buy in

and the hustlers sell out.