Trump’s Truth Social stock tanks after new SEC filings reveal company lost $58m in 2023

After ablockbuster debut on the Nasdaqlast week, the share price of Donald Trump’s media and technology group plummeted in trading on Monday afterpost-merger financial statements revealed new details of the company’s business.

Trump Media & Technology Group, the parent company of social media platform Truth Social, was down as much as 27 per cent in value by lunchtime, having opened at $61.92.

A regulatory filing with the Securities & Exchange Commission early on Monday morning showed the company had only achieved revenue of $4.1m in 2023, with net losses reaching $58.2m.

In 2022, the company said it made a profit of $50.5m.

Since the merger with Digital World Acquisition Corp, Trump Media began trading on the Nasdaq under the ticker symbol DJT on Tuesday, reaching a high of $79/share by Thursday.

The share price bottomed out at around the $47 mark before staging a slight recovery to $49 by mid-afternoon.

Industry analysts have compared the fervour around Trump Media to the meme stock craze, which notably boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.

On Monday, shares for these so-called meme stocks slid as well, with GameStop and AMC down more than 7 per cent and 11 per cent, respectively. And Reddit, another company that recently went public and looped into meme stock frenzy comparisons, slumped more than 6 per cent.

Research firm Similarweb estimates that Truth Social had roughly 5 million monthly visits in February of this year. By comparison, Facebook had 15.2 billion visits, while Reddit had 2 billion.

“TMTG may be subject to greater risks than typical social media platforms because of the focus of its offerings and the involvement of