Donald Trump’s media company reported a $327.6m first-quarter loss this week, sending Trump Media and Technology Group’s stock plunging in recent days.
Since Friday’s market close, TMTG, the parent company of the former president’s Truth Social site, has seen its share price slide 13.2 per cent, to $44.19.
The price crash personally cost the former president, who reportedly owns 114 million shares in TMTG, more than $766m, according to an analysis from The Independent.
“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” the company said in a statement Monday.
Company officials have said the first quarter results reflect the complications of a deal this March to merge with Digital World Acquisition Corporation, special purpose acquisition company that allowed the Trump media conglomerate to go public via merger.
“After an unprecedented, years-long process, we have consummated our merger and dispensed with the vast bulk of merger-related expenses, leaving the Company well-capitalized and supported by a legion of retail shareholders who believe in our mission to provide a free-speech beachhead against Big Tech censorship,” Trump Media and Technology Group Corp CEO Devin Nunes said in a statement about the earnings results.
Despite revenues of fewer than $1m and an active US mobile user base hardly above 100,000 people, the company is valued at more than $7bn, comparable to a large tech company despite rivals like X having hundreds of times more users.
Donald Trump has both benefitted and suffered from his close association with the company.
As the majority owner, the former president earned a roughly $1.8bn stock bonus as a result of the company’s share price performance.
However, Trump Media also experienced a nearly 20 per cent stock price plunge on the first day of Mr Trump’s hush money trial in April.
Mr Trump cannot cash in any of his shares until September, six months after it went public.
