Just last week, Donald Trump’s new media venture which backs his Truth Social site was flying high, earning him billions on paper and leading some to suggest he might use the rising value of the stock as collateral for a bond to cover the massive court-imposed fines that have been assessed against him.
However, an SEC filing from Trump Media & Technology Group shows that Truth Social lost a massive $58 million in 2023, and that sent shares of the once-rising stock plummeting. As of Noon Monday, the price of a share was down nearly 20%, which suggests the stock is in freefall and not likely to recover, especially since it’s now clear that the venture is a failure.
The collapse of Trump Media & Technology Group’s stock price was predicted by those in the know, including Emily Stewart of Business Insider.
For one thing, TMTG, which owns the conservative Twitter copycat Truth Social, makes basically nothing. According to a new financial filing from the company released on Monday, its total revenue was $4.1 million in 2023. Extrapolate that out, and the stock is trading at something like 2,000 times the company’s annual revenue. That is, um, high. Apple, for example, trades at about seven times its total revenue. And given TMTG’s paltry revenue, it actually lost $58 million last year.
Despite his claims over the years, Donald Trump has never actually been successful at anything other than hyping himself and getting suckers to give him large sums of money that he quickly burns through, leaving everyone but himself wondering what became of their investment.
How could Truth Social, which has a smaller base of followers than both Facebook and Twitter, hope to compete? While the Trump name may have once held some allure, it hasn’t now for years, and with every angry posting Donald makes online, more people are alienated and abandon him.
It turns out that being “anti-woke” doesn’t pay well, Stewart explains in her article.
As much as people say they want to shop and invest their values, it often doesn’t turn out to be the case. Instead, most people opt for the convenient option and whatever they’re most used to doing already. There’s a reason most boycotts don’t work — people are busy and tired. It’s true on the left as well. Dig deep enough, and every company in the world can probably give you a reason not to want to give them your money.
Donald Trump has the stench of a loser all over him. He’s becoming more irrelevant by the day, and if he loses to President Joe Biden in November, don’t be surprised if he winds up filing for personal bankruptcy, even if he has to do so from prison.
