Trump Media & Technology Group closed down 21% on April 1, wiping out its gains from last week's debut, after disclosing a $58M+ loss on $4.1M in 2023 revenue

Shares of Donald Trump's social media company plunged 21% on Monday, wiping out the gains from its debut last week …

Reuters 2024-04-02

Context & Ripple Effects

Trump Media’s post-debut surge had pushed its market capitalization to $13.5 billion as small investors lifted the shares, making the subsequent disclosure a sharp test of whether that enthusiasm could survive closer scrutiny of the business. The first trading reaction foreshadowed a broader retail-led selloff that erased $2.8 billion in market value within days.

Later coverage continued to show a gap between the company’s market value and its ability to build a profitable revenue stream, rather than a quick operational validation of the debut valuation.

First-order effects

The loss and modest revenue disclosure immediately reset the market’s focus from the debut rally to Trump Media’s underlying financial performance, driving a 21% share-price decline.
The selloff reduced the paper value of shareholders’ holdings, including Donald Trump’s large stake, and removed the gains generated in the company’s first days of public trading.

Second-order effects

A lower share price makes the company’s public valuation more sensitive to future earnings releases and operating metrics, increasing pressure on management to show revenue growth or a credible route to narrower losses.
The move gave retail holders a concrete financial benchmark against which to assess the earlier rally; the subsequent 36% decline from March 26 indicates that reassessment extended beyond a single trading session.

Third-order effects

If public-market pricing continues to diverge sharply from operating results, Trump Media may become a durable example of a politically resonant, retail-driven stock whose valuation is governed as much by shareholder sentiment as by near-term fundamentals.
The key structural question is whether public-company disclosure cycles can progressively anchor the valuation to business performance; later reports of weak revenue and losses suggest that process remained unresolved.

The trend: Trump Media is part of a broader shift in which highly visible, retail-owned public companies face rapid valuation resets when mandatory financial disclosures test narrative-driven demand.

Discussion

@drewharwell Drew Harwell on threads
New: Trump Media made just about $4 million last year, way out of sync with the frenzied stock-market debut that just valued it at $8 billion, per new financial filings. (For comparison, Reddit last year made $800 million.) Stock is crashing on the news https://www.washingtonpo…
@moskov Dustin Moskovitz on threads
Meme stock's gonna meme stock
@datadrivenmd Jorge Caballero on threads
Truth Social stock is getting dumped faster than I can post screenshots 😂
@mattsheffield@mastodon.social Matthew Sheffield on mastodon
As has already happened several times, Trump cultists who own the Truth Social stock are losing money bigly. — After news broke that Truth Social is accelerating its money losing and that its users are declining, the stock has plummeted drastically. — This is what a “bloodbat…
@lolgop.bsky.social @lolgop.bsky.social on bluesky
The valuation is entirely based on having a Supreme Court that won't ever enforce the Emoluments Clause on a Republican president [embedded post]
@toobigtofail.bsky.social @toobigtofail.bsky.social on bluesky
Truth Social has the same revenue as a (1) moderately successful McDonald's franchise, and it's valued at $6 billion somehow. [image]
@edbott.com Ed Bott on bluesky
The whole point of an April Fools joke is it's supposed to be believable. [embedded post]
@nycjim Jim Roberts on x
Trump Media shares fall sharply after company reports net loss of $58 million in 2023. “TMTG expects to incur operating losses for the foreseeable future.” *Thoughts and prayers. https://www.cnbc.com/...
@teroterotero Tero Kuittinen on x
This ten billion dollar company is generating as much revenue as Orem's, that nice Americana diner in Wilton. Best hot wings in Fairfield County & a decent pita and hummus plate.
@danprimack Dan Primack on x
Trump is now down more than $1 billion (in paper value) in the past 3 hours. $DJT
@danprimack Dan Primack on x
$DJT stock decline today illustrates that there's still a problem with the deSPAC process. No reason a company should have 4-day grace period between when they begin trading and providing updated financials. I know that's better than it used to be, but it's still not good enough
@bgrueskin Bill Grueskin on x
Trump's Truth Social company posted its new financials to the SEC today. The firm generated just $4.1 million (with an M) revenue for all of 2023, while racking up $58 million in net losses. Market cap is > $6 billion. (This isn't an April 1 joke.) https://app.quotemedia.com/... …
@turnernovak Turner Novak on x
With a $7B+ valuation on $3.5M in revenue, Trump Media & Technology Group now has a higher multiple than every AI company
@alex @alex on x
good get here from Axios, gonna hammer into the filings later but woof
@austen Austen Allred on x
So if the reports I just read are accurate Truth Social is worth $8 Billion and X/Twitter is worth $10 Billion. Consider me skeptical.
@danprimack Dan Primack on x
NEW: Trump's Truth Social lost $58 million last year. Moreover, revenue DECLINED between Q3 and Q4 2023, with the company bringing in just $751,000 between Oct-Dec of last year. https://www.axios.com/...
@morningbrew @morningbrew on x
Truth Social vs. Reddit Truth Social - Revenue: $4.6 million - Market Cap: $9.7 billion - Monthly active users: 5 million Reddit - Revenue: $804 million - Market Cap: $11 billion - Daily active users: 73 million Make it make sense.
@bradmunchen @bradmunchen on x
It's hilarious how Truth Social $DJT—which has close to zero revenues—is now worth $8.4bn, or 7% more than Twitter's valuation of $7.8bn. I wonder which pisses Musk off more: Twitter having a lower valuation than $DJT or Toyota $TM having outperformed $TSLA by 67% YTD. [image]
@joshtpm Josh Marshall on x
Simple points. Truth Social has roughly the same annual revenues as @TPM. (I am, very unfairly, not a billionaire.) it has roughly 20x the expenses. And it has close to no user base.
@juddlegum Judd Legum on x
Truth Social has a multi-billion dollar valuation thanks to Trump supporters that are driving up the share price. But it's an awful business. Less than $4 million in revenue in 2023. $58 million in loses. Basically a money incinerator. [image]
@jeffjarvis @jeffjarvis on x
A new spectator sport: Watch DJT fall. https://www.google.com/... [image]
r/wallstreetbets r on reddit
Trump Media stock tanks as new filing reveals heavy losses, ‘greater risks’ on Trump's involvement
r/stocks r on reddit
Trump Media shares fall sharply after company reports net loss of $58 million in 2023
r/politics r on reddit
Trump Media shares plummet 21% days after debut
r/neoliberal r on reddit
Trump Media plunges more than 25% after company reports net loss of $58 million in 2023
r/MarchAgainstTrump r on reddit
Trump's Truth Social stock plunges as 2023 loss put at $58 million
r/TrumpIsPoor r on reddit
Trump Media plunges more than 25% after company reports net loss of $58 million in 2023
r/AntiTrumpAlliance r on reddit
Trump Media plunges more than 25% after company reports net loss of $58 million in 2023
r/Trumpvirus r on reddit
Trump's Truth Social lost $58 million in 2023
r/Law_and_Politics r on reddit
Trump's Truth Social lost $58 million in 2023
r/technology r on reddit
Trump's Truth Social lost $58 million in 2023

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