The parent company of Donald Trump’s social media platform Truth Social reported a loss of more than $16 million and revenue of less than $1 million in its second financial quarter.
Trump Media & Technology Group announced its quarterly report to the SEC on Friday, saying its net loss was largely made up of $8.3 million in legal fees related to the March merger and $3.1 million in technology costs related to the company’s new streaming service.
The filing also shows that the company generated just $837,000 in revenue and $2.3 million in interest income in the second quarter of 2024.
“With the launch of TV streaming in August 2024, the Company believes it has established a core driver of long-term earnings and value,” a Trump Media press release said in the filing. “With its strong balance sheet and zero debt, the Company believes it has sufficient working capital to fund operations for the foreseeable future.”
Trump Media, which trades under the ticker DJT, has seen falling stock prices since mid-July, with prices falling more than 7% as of Monday afternoon.
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Trump Media (DJT) Stock Prices
Trump Media Compared to a Meme Stock Due to Volatility and Overvaluation
Trump Media has long been compared to a meme stock, as experts say its prices rise and fall largely due to the coordination and attention of retail investors.
The company was founded in 2021 after Trump was ousted from other social media companies following the Jan. 6 riots at the U.S. Capitol. The company went public in March through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. Despite the splashy debut, shares have soared, often in coordination with the rollercoaster of a news cycle for Trump this year.
Experts also say the stock is overvalued by standard Wall Street standards compared to other social media companies.
In May, Trump Media reported a net loss of $327.6 million in the first quarter of 2024 and brought in $770,500 in revenue, according to a filing. Regulatory filings show the company suffered a loss in 2023, generating about $4 million in revenue and losing more than $58 million.
“From the beginning, our goal has been to make Truth Social an impenetrable beachhead of free speech. By taking extraordinary steps to minimize our dependence on Big Tech, we are doing just that,” Trump Media CEO Devin Nunes said in Friday’s press release.
This article originally appeared on USA TODAY: Trump Media’s tech stock price drops 7% after $16 million loss in Q2
