Key Takeaways:
Trump’s social media company released new financials, which aren’t good.- But those are just the numbers he’s willing to release.
- He won’t share how many users he has, or how many have signed up.
- That’s a giant red flag.
The stock price of Trump Media & Technology Group Corp, Donald Trump’s social media company, plummeted by nearly 25% on Monday, following the release of new financials. These financial reports shed light on the poor business performance of Trump Media & Technology Group, the entity behind Truth Social, indicating a continued downward trend in its financial health.
While some may argue that the newly disclosed financials highlight a worsening situation for the already struggling company, it’s essential to note that the underlying issues with Trump Media & Technology Group were evident in previous filings. The latest financials merely reinforce what was already known about the company’s bleak business prospects.
For instance, Trump Media & Technology Group’s revenue for the last quarter of 2023 was a mere $750,000, a stark decline from the $3.4 million generated in the first nine months of the year. This dismal growth trajectory presents a challenging narrative for investors, even with Donald Trump’s involvement.
It’s worth acknowledging that few rational investors viewed Trump Media & Technology Group as a viable business worth billions of dollars based solely on its financial performance. Instead, many investors were drawn to the company due to their support for Donald Trump or the allure of investing in a meme stock associated with his brand.
While it’s true that fast-growing tech companies often prioritize growth over profitability, they typically provide investors with key performance indicators such as user metrics to demonstrate their increasing popularity and potential for future success. However, Trump Media & Technology Group has failed to provide such crucial data, leaving investors in the dark about the company’s user base, engagement levels, and advertising revenue.
The company’s reluctance to disclose key performance indicators, as stated in its recent filing, raises further doubts about its transparency and strategic direction. Without access to essential metrics like sign-ups, average revenue per user, and active user accounts, investors are left unable to accurately evaluate Trump Media & Technology Group’s progress and growth potential.
In summary, the significant drop in Trump Media & Technology Group’s stock price underscores the deepening concerns surrounding the company’s viability and underscores the importance of transparency and accountability in the eyes of investors.