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Shares of Trump media fell greater than 10% on Tuesday, a day after the Truth Social app owner reported a net lack of $327.6 million on revenue of just $770,500 in the primary quarter of 2024.
Trump Media, whose majority shareholder is former President Donald Trump, announced the loss in its first issue Results report since its shares began trading publicly under the DJT ticker in March through a merger with a shell company.
The loss for the three-month period ended March represented a net lack of $3.61 per share attributable to common shareholders, based on the earnings report.
The report attributed Trump Media’s loss to non-cash expenses, including “the conversion of promissory notes and the related elimination of prior liabilities” related to its merger with Digital World Acquisition Corp. preceded.
Trump Media said most of its meager revenue comes from its “burgeoning advertising initiative.”
“At this early stage of the company’s development, TMTG remains focused on long-term product development rather than quarterly revenue,” the earnings report said.
The company’s share price has risen sharply because it went public at the tip of March. After reaching a high of over $79 per share in its debut, the stock suffered a weeks-long decline that worn out most of its gains.
However, the share price has partially recovered in recent weeks and was around $44 as of Tuesday morning.
Although the corporate doesn’t generate significant revenue, it currently has a market capitalization of around $6 billion.
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