Live streaming newscasts, breaking news, weather & original, local programming.Shares of Truth Social owner Trump Media & Technology Group plunged Monday after the company disclosed that it lost more than $58 million and generated very little revenue in 2023. Former President Donald Trump is the company's majority shareholder, and his net worth tumbled by more than $1 billion Monday as a result.
Not only that, but revenue tumbled 39% year-over-year in the fourth quarter to just $751,500. That's not what investors want to see from any start-up, especially one valued at these levels. The losses disclosed Monday are so severe that Trump Media's accountants warned at the time they "raise substantial doubt about its ability to continue as a going concern," which is Wall Street for: We may not be able to stay in business. That warning echoes one made in November when accountants said Trump Media might not survive unless it soon completes its merger to go public.
"Although it won't take that long to burn through the cash it raised...if they keep losing it at the rate they are," Ohlrogge said, adding that it's possible Trump Media can raise more cash by selling additional stock.