Internet questions Donald Trump's business acumen as his social media company suffers $327.6M net loss

NEW YORK CITY, NEW YORK: Trump Media and Technology Group (TMTG), which operates the social media platform Truth Social, has shared its financials for the first quarter of 2024, reported Variety.

According to the publication, the company affiliated with former president Donald Trump reported $770,500 in revenue during the period, with a net loss of $327.6 million.

The Florida-based company, which began trading publicly in March after its merger with special purpose acquisition company Digital World Acquisition Corporation (DWAC), has a market capitalization of about $6.6 billion, as of May 20.

With 64.9% of the outstanding shares in TMTG, Trump's stake at present stands at $5.5 billion.

Statement by TMTG on Q1 report

“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” stated the company during the announcement of the Q1 data.

“By adding features to Truth Social, launching live TV streaming, and building out its ecosystem, the Company aims to first develop a slate of best-in-class products that can then be leveraged to increase revenue and drive long-term value.”

The “nascent advertising initiative” of TMTG “continue to evolve as TMTG implements its vision," it added.

Along with the launch of a new “live TV streaming platform” for Truth Social’s app for Android, iOS, and web, TMTG also plans on bringing out a “stand-alone Truth Social over-the-top (‘OTT’) streaming app for phones, tablets and other devices,” followed by Truth Social streaming apps “for home TV" in subsequent phases.

The dependence of TMTG on Donald Trump

TMTG was formed in 2021 when the former president was banned from online platforms such as X (then Twitter), Facebook, Instagram, YouTube, and others, for his role in inciting violence at the Capitol riot on January 6, 2021, and his attempts to overturn the results of the 2020 election.

Though Trump's accounts have since been reinstated by the said platforms, he continues to use Truth Social as his preferred social media outlet.

In a section labeled 'Key Factors Affecting Results of Operations', the company disclosed, "TMTG’s success depends in part on the popularity of our brand and the reputation and popularity of President Donald J Trump. The value of TMTG’s brand may diminish if the popularity of President Donald J. Trump were to suffer."

"Adverse reactions to publicity relating to President Donald J Trump, or the loss of his services, could adversely affect TMTG’s revenues, results of operations, and its ability to maintain or generate a consumer base," it added.

"President Donald J Trump is involved in numerous lawsuits and other matters that could damage his reputation. Additionally, TMTG’s business plan relies on President Donald J. Trump bringing his former social media followers to TMTG’s platform," the company said. 

"In the event any of these, or other events, cause his followers to lose interest in his messages, the number of users of our platform could decline or not grow as we have assumed.”

Internet trolls Trump over company's loss

"Behold the businessman that Republicans want to put back in the White House," wrote a social media user while reacting to the news on X.

"He should have just come back to Twitter. Ridiculous," another said.

"I'd look closely at those losses and where that $$$ actually went. Seems like a good way to bury money when he's on the hook for millions," expressed one individual.

"770K revenue only? Not enough maga companies advertising there?" asked another.

"It’s a Trump business. What else would one expect?!" one person wrote.

"So much winning apparently his company got tired of it," another added.

This article contains remarks made on the Internet by individual people and organizations. MEAWW cannot confirm them independently and does not support claims or opinions being made online.