According to Bloomberg during the trading session on April 1, shares of Trump Communications and Technology Company (Trump Media), the unit that owns the social network Truth Social, decreased by 21%, causing Mr. Trump’s assets to evaporate more than $1 billion.
Mr. Trump holds 78.8 million Trump Media shares, estimated at about 3 8 billion USD.
Trump Media shares plummeted after the company announced business results reporting a loss of 58 2 million USD in 2023. Revenue in the fourth quarter of 2023 even decreased by 39% down to 751,500 USD. In 2022 Trump Media has a profit of 50 5 million USD.
That is not what investors want to see with any startup especially with enterprise is valued at such a high level. Last weekend this company was valued at up to 11 billion USD but is now only worth 8.8 billion USD.
The loss that Mr. Trump’s company announced yesterday was so serious that the accountants appeared to skeptical about this company’s ability to continue operating.
Last November they also warned that Trump Media could hardly survive if it did not quickly merge and list. The merger was only completed last week.
Trump Media’s problem is that the company’s main product – Truth Social – is losing users. The number of active Truth Social accounts on iOS and Android in the US in February decreased to 494,000, down 51% compared to the same period last year. Meanwhile, social network X (formerly Twitter) has up to 75 million active accounts in the US.
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