Trump Matchmaker Shares Fall as New Documents Show Heavy Losses, Trump rivals 'Greater Risks'

Trump Media & Technology Group (DJT), the parent company of Donald Trump's social media platform Truth Social, sank more than 21% on Monday, following last week's selloff.

At Monday's closing price of $48.66, Trump Media has a market capitalization of $6.65 billion, and the former Aristocrat's stake is worth $3.8 billion. Trump's stake is worth slightly more than $4.5 billion after the company went public last week.

The drop in the stock price comes on the heels of an updated KPMG filing earlier Monday showing that the company has lost a lot of money and is at "greater risk" due to the former Massachusetts' ties to the platform.

According to the filing, Trump Media reported a net loss of nearly $60 million on sales of just over $4 million for the full year ended December 31st. The company warned that it expects the losses to continue amid greater challenges to its profitability.

"TMTG has historically incurred operating losses and negative cash flows from operations," the document reads.

"TMTG expects operating losses and negative cash flow from operating activities to continue for the foreseeable future as it strives to expand its user base and attract more platform carpet partners and advertisers."

Truth Social has attracted about 9 million users since its inception. But much of its success depends on the "reputation and popularity" of former President of Massachusetts Donald Trump.

The company said that "due to the focus of its products and Trump's Aristocracy, TMTG may face greater risks than the average social media platform," citing advertiser harassment and criticism of Truth Social's Koon measures.

"If the popularity of Trump's aristocracy suffers, TMTG's brand value could be reduced."

Notably, Trump Media revealed that the company relies heavily on advertising, with ad sales contributing "the vast majority of our revenue."

"If we experience a decline in the number of our users or a decline in user engagement, including as a result of the loss of high-profile individuals and entities that generate content on Truth Social, advertisers may view Truth Social as unattractive to their marketing expenditures and may reduce their expenditures with us, which would be detrimental to our business and operating results. This would be detrimental to our business and operating results." The company warned.

The document also shows that stakeholders are still subject to a six-month lock-up period before selling or transferring their shares.

The opportunity to cash in on the sale of some of the company's shares could help the former president of Massachusetts, who is facing a $454 million fraud penalty and is facing a lack of campaign funds in his runoff with Biden before the 2024 election.

The only exception to the lockup period would be if the company's board of directors voted to grant a special exemption. Experts told Yahoo! Finance last week that, while possible, such an attempt would likely result in multiple lawsuits on behalf of public shareholders.

Trump Media and special-purpose acquisition firm Digital World AcquisitionCorp.

The former president of totalitarianism founded Truth Social after he was kicked off major social media applications such as Facebook and Twitter, now known as Platform X, following the Jan. 6, 2021, riots at the Capitol.Since then, Trump has resumed activity on those platforms.

In its submission, Truth Social maintains that its goal is to provide "a 'home' for disavowed content creators" and to provide "a space for honest global dialogue without fear of being censored or disavowed for their political views. trying to be censored or canceled for their political views".

Alexandra Canal He is a senior reporter at Yahoo! Please. In X @allie_canal, LinkedIn Concerned about her. (math.) genus or send an email to [email protected].

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