Trump's Truth Social, auditor raises questions about viability, reveals $58 million loss | Donald Trump
Donald Trump's Truth Social's stock price fell as much as 25% on Monday due to social media influence The company revealed it lost $58.2 million last year, and auditors revealed “significant doubts” about its ability to continue operating.
Ann Unusual stock market debut rest of last week Trump Media & Technology Group is valued at more than $7 billion. However, sales in 2023 were only $4.13 million. Regulatory notification.
The more than $4 million in sales represents a significant increase from $1.47 million in 2022, but it highlights the small size of Trump Media's business and the depth of its losses.
The company's auditor, B.F. Borgers of Colorado, said the loss “raises significant doubt about the company's ability to continue as a going concern,” according to Monday's filing.
The group's share price and that of Digital World Acquisition, the shell company it merged with to go public, have soared since the beginning of the year.
The company's valuation is similar to social network Reddit. Published last month.According to Reddit, he made his $804 million in sales in 2023. Regulatory notificationa loss of $90.8 million.
Trump Media's 2023 net loss was $58.2 million. After deducting interest expense on debt, the company's operating loss was $16 million, down slightly from $23.2 million in 2022.
Nevertheless, the market rally in recent months has been volatile; Turned Trump Media into a so-called meme stockIt's been fueled by internet memes, in some cases posted on platforms like Truth Social, urging retail investors to buy.
The company joins a group of small stocks, including video game retailers. game stop, which shocked Wall Street in recent years by holding unexpected and tumultuous rallies.Maintaining momentum after initial spike has often proven difficult.
Mr. Trump owns a large stake in Trump Media, and has made billions of dollars in paper money by entering the market.Last Monday, when he finally merged with Digital World, Bloomberg Said The former president has joined the world's 500 richest people for the first time.
But he is currently unable to sell his holdings, and the stock would need to continue trading at the levels that have soared in recent months to raise billions of dollars in sales.
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Trump, who is vying to take back the presidency from Joe Biden in November's presidential election, is grappling with hefty legal costs.he Betting $454 million After the recent civil fraud scandal, the former president threw a lifeline At that time, a panel of appeals court judges gave him 10 days to secure a much smaller bail of $175 million.
said John Rekenthaler, vice president of research at Morningstar. recently discussed Trump media was like virtual currency. “Like Bitcoin, people aren't buying Trump Media because of its future cash flow, but because 1) they expect the price to go up, and 2) they have an affinity for the asset,” he said. wrote. “Bitcoin owners are members of the club.
“Trump Media investors are no different on an even larger level. For them, DJT stock is like a currency in which they can express their beliefs and commitments.”
Summarize this content to 100 words Donald Trump's Truth Social's stock price fell as much as 25% on Monday due to social media influence The company revealed it lost $58.2 million last year, and auditors revealed “significant doubts” about its ability to continue operating.Ann Unusual stock market debut rest of last week Trump Media & Technology Group is valued at more than $7 billion. However, sales in 2023 were only $4.13 million. Regulatory notification.The more than $4 million in sales represents a significant increase from $1.47 million in 2022, but it highlights the small size of Trump Media's business and the depth of its losses.The company's auditor, B.F. Borgers of Colorado, said the loss “raises significant doubt about the company's ability to continue as a going concern,” according to Monday's filing.The group's share price and that of Digital World Acquisition, the shell company it merged with to go public, have soared since the beginning of the year.The company's valuation is similar to social network Reddit. Published last month.According to Reddit, he made his $804 million in sales in 2023. Regulatory notificationa loss of $90.8 million.Trump Media's 2023 net loss was $58.2 million. After deducting interest expense on debt, the company's operating loss was $16 million, down slightly from $23.2 million in 2022.Nevertheless, the market rally in recent months has been volatile; Turned Trump Media into a so-called meme stockIt's been fueled by internet memes, in some cases posted on platforms like Truth Social, urging retail investors to buy.The company joins a group of small stocks, including video game retailers. game stop, which shocked Wall Street in recent years by holding unexpected and tumultuous rallies.Maintaining momentum after initial spike has often proven difficult.Mr. Trump owns a large stake in Trump Media, and has made billions of dollars in paper money by entering the market.Last Monday, when he finally merged with Digital World, Bloomberg Said The former president has joined the world's 500 richest people for the first time.But he is currently unable to sell his holdings, and the stock would need to continue trading at the levels that have soared in recent months to raise billions of dollars in sales.Skip past newsletter promotionssign up for today's businessGet ready for work – all the business news and analysis you need every morningPrivacy Notice: Newsletters may include information about charities, online advertising, and content funded by external organizations. For more information, see privacy policy. We use Google reCaptcha to protect our website and Google. privacy policy and terms of service Apply.After newsletter promotionTrump, who is vying to take back the presidency from Joe Biden in November's presidential election, is grappling with hefty legal costs.he Betting $454 million After the recent civil fraud scandal, the former president threw a lifeline At that time, a panel of appeals court judges gave him 10 days to secure a much smaller bail of $175 million.said John Rekenthaler, vice president of research at Morningstar. recently discussed Trump media was like virtual currency. “Like Bitcoin, people aren't buying Trump Media because of its future cash flow, but because 1) they expect the price to go up, and 2) they have an affinity for the asset,” he said. wrote. “Bitcoin owners are members of the club.”Trump Media investors are no different on an even larger level. For them, DJT stock is like a currency in which they can express their beliefs and commitments.”
https://www.theguardian.com/us-news/2024/apr/01/trump-truth-social-stocks Trump's Truth Social, auditor raises questions about viability, reveals $58 million loss | Donald Trump
