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The parent company of Donald Trump’s social networking site Truth Social lost USD 19.2 million in the last quarter
US President-elect Donald Trump | Photo: AP
The parent company of Donald Trump’s social networking site Truth Social lost USD 19.2 million in the last quarter, according to an earnings report released on the same day he won back the presidency.
Trump Media and Technology Group reported late Tuesday that much of that loss stemmed from more than USD 12 million in legal fees, along with a decline in revenue, according to the surprise Election Day earnings report.
Its stock price surged Wednesday but that was more likely due to Trump’s defeat of Vice President Kamala Harris to retake the presidency than on its profit prospects.
Shares of Trump’s media company jumped approximately 17%, reaching $39 per share.
Trump created the company after he was banned from Twitter and Facebook following the January 6, 2021, Capitol riot.
Based in Sarasota, Florida, it has been losing money and struggling to raise revenue.
Revenue for the three-month period that ended on September 30 was just over USD 1 million, down nearly 6 per cent from a year earlier. Trump Media, based in Sarasota, Florida, has lost more than USD 363 million so far this year.
Trump Media said some of its costs related to the launch of its new TV streaming service called Truth+.
CEO and former Republican US Rep. Devin Nunes said in a statement the company “continues to explore additional possibilities for growth” such as mergers with other companies that “would benefit from Trump Media technology and branding.”
The company said in a regulatory finding that its success depends in part on “the reputation and popularity of President Donald J. Trump.”
US stocks rallied sharply Wednesday in response to Trump’s election victory, with the Dow Jones leaping 1,300 points (3%)—its biggest gain since 2022. The S&P 500 climbed 2%, while the Nasdaq gained 1.8%.
Small-cap stocks also saw a strong boost, with the Russell 2000 soaring 4% as investors bet on companies poised to benefit from Trump’s economic policies.
(With agency inputs)