Trump’s Net Worth Plunges by $1 Billion as Trump Media’s Stock Tumbles
Former President Donald Trump experienced a substantial hit to his net worth as shares of Trump Media & Technology Group, the owner of Truth Social, nosedived following the company’s revelation of significant losses and minimal revenue in 2023.
In a regulatory filing, Trump Media disclosed a staggering loss of $58.2 million in 2023, in stark contrast to the $50.5 million profit recorded in the previous year. Moreover, the company reported paltry revenue of just $4.1 million, marking a drastic 39% decline year-over-year in the fourth quarter.
Investors swiftly reacted to the news, causing Trump Media’s stock to plummet by 21% on Monday, wiping out nearly 200% gains seen earlier in the year. Donald Trump, who holds the majority of shares with 78.8 million, saw his net worth plummet by over $1 billion in response to the stock’s free fall.
The dire financial state prompted Trump Media’s accountants to issue a warning about the company’s sustainability. However, the completion of a long-delayed merger injected approximately $300 million in cash into the company last week, easing some concerns about its future.
Despite the cash infusion, doubts persist about Trump Media’s prospects, given its ongoing losses and dwindling user base on Truth Social. With monthly active users plummeting by 51% year-over-year in February, the company faces an uphill battle to regain traction in the fiercely competitive social media landscape.
The year 2024 looms as a critical juncture for Trump Media, with the forthcoming presidential election offering a pivotal opportunity to leverage digital advertising. Nevertheless, the company’s financial woes and shrinking user base underscore the formidable challenges ahead as it endeavors to establish itself as a significant player in the social media arena.
