Key Takeaways
- Shares of former President Donald Trump’s media company slid in intraday trading Tuesday, a day after the Truth Social owner reported quarterly results for the first time as a public company.
- Trump Media & Technology Group generated just $770,500 in revenue for the first quarter as it recorded a $327.6 million loss.
- The company said it is more focused on developing new products as a young company like a streaming TV platform rather than quarterly revenue.
Trump Media & Technology Group (DJT) stock dropped more than 9% in intraday trading Tuesday, a day after the media company of former President Donald Trump reported a $327.6 million quarterly loss.
The company, which operates the social media network Truth Social, generated just $770,500 in revenue for the first quarter, its first report since going public. In the first quarter of 2023, TMTG posted a net loss of $210.3 million.
“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 addition to the Truth Social platform, which operates similarly to X, the company also plans to introduce new products like streaming platforms for Apple (AAPL) and Android devices, as well as a streaming app for TVs. In Monday’s release, TMTG said it has recently signed contracts with a data center and hardware provider as it progresses toward launching its streaming venture.
Charting Trump Media’s Roller-Coaster First Two Months on the Market
The company initially announced plans to go public in October 2021, planning to merge with special purpose acquisition company (SPAC) Digital World Acquisition Corp. After Securities and Exchange Commission (SEC) investigations delayed those plans, the companies finally completed their merger in March 2024, paving the way for TMTG to debut on the Nasdaq under the stock ticker “DJT,” Trump’s initials.
In its first two months as a public company, TMTG’s stock has been on a roller coaster of highs and lows, jumping in its debut on March 26, when it peaked at $79.38 and finished the session 16% higher at $57.99. It subsequently reported a $58.2 million loss for fiscal 2023 and filed to issue millions of new shares, sending the stock down to $22.55 on April 16, but shares soon rebounded after the company told regulators it believed that “naked” short selling of its stock was impacting its price.
Earlier this month, the auditing firm used by TMTG was fined and banned by the SEC for what the agency called “massive fraud.”
Shares fell 9.4% to $43.82 as of 12:17 p.m. ET Tuesday.