Donald Trump’s media company, Trump Media & Technology Group Corp., experienced ongoing financial struggles in the third quarter, marked by weak revenue generation leading up to the election. The company, valued at $7.4 billion as of Tuesday, disclosed a net loss of $19.2 million for the quarter ending on September 30, with revenue barely surpassing $1 million, according to recent filings. Despite these challenges, the company’s stock, known for its volatility, fell by 8% in after-hours trading before recovering to a 1% gain later that evening. This mirrors the tumultuous trading patterns during regular market hours.
Throughout the first nine months of the year, the company, which owns the social media platform Truth Social, has accumulated losses exceeding $363 million—a significant increase from the $49 million loss during the same period in 2023. Revenue has dwindled to $2.6 million, down from $3.4 million last year. However, the company’s stock has often moved in reaction to speculation about Trump’s potential political future rather than its current financial health.
Trump’s financial stake in the company is crucial for his wealth, as he holds nearly 115 million shares. Nevertheless, he remains committed to not selling them, while his co-founders, who previously appeared on Trump’s show “The Apprentice,” have quickly sold the bulk of their shares as soon as they were able.
Listed under Trump’s initials, the stock launched in March through a special-purpose acquisition company (SPAC) and has exhibited extreme volatility, initially peaking at $79.38 before plummeting to a low of $11.75 in September. Such price swings highlight the speculative nature of the stock, making it one of the market’s most unpredictable securities.
Original Story https://www.livemint.com/news/world/trump-media-posts-lackluster-quarterly-sales-as-losses-pile-up-11730848062071.html
Category :
Tags:
