Shares in Trump Media & Technology Group, the parent company of former President Trump’s Truth Social platform, continued to fall at the start of the trading week on Monday, dipping another 10 percent.
Trump Media’s shares were hovering around $36 as of Monday morning after closing at about $40 on Friday. The latest numbers mark a steep fall for the Trump Media, whose shares initially climbed above $79 after going public nearly two weeks ago.
The company’s steady downward slide began last Monday after it reported a $58 million loss in 2023. While Trump Media generated about $4.1 million in revenue last year, it spent roughly $16 million on operating expenses and $39.4 million on interest expenses, according to regulatory filings.
The Truth Social parent also noted that it “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future” and that “it is premature for [Trump Media] to predict when it will attain profitability and positive cash flows from its operations.”
However, Trump Media CEO Devin Nunes argued Sunday that the company is “well positioned” to turn profitable.
“Even if you take the ridiculous cost that it took us to get to this point, we are well positioned,” Nunes told Fox News host Maria Bartiromo on “Sunday Morning Futures.”
“Why are we well positioned?” he continued. “Because we have no debt. We’re coming out of this with no debt, a platform that works really, really well that communicates to millions of people, and then we have $200 million in the bank.”
Financial information on Trump Media’s first quarter performance is not yet available. The company received an influx of $300 million after merging with the blank check company Digital World Acquisition Corp. (DWAC) in order to go public.
Trump, who owns about 58 percent of Trump Media, also touted the platform as “very solid” last week.
“All of the competitors to TRUTH SOCIAL, especially those in the Radical Left Democrats Party who are failing at every level, like to use their vaunted ‘disinformation machine’ to try and convince people, and it is not easy to do, that TRUTH is not such a big deal and doesn’t ‘get the word out’ as well as various others, which they know to be false,” the former president said in a post on the website.
Copyright 2024 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.