April 2, 2024
NEW YORK — Less than a week after its flashy stock market debut, Donald Trump’s social media company revealed Monday that it lost about $58. 2 million last year, causing its inventories to fall more than 21 percent.
Losses in 2023 for Trump’s media
Trump Media’s earnings will be $4. 1 million in 2023, according to the SEC filing, though that’s up from $1. 5 million in 2022.
After merging with a blank-check company called Digital World Acquisition Corp. , Trump Media began trading on March 26 on the Nasdaq stock exchange under the ticker symbol DJT. And it’s been a volatile adventure.
Trump Media shares soared in its first few days of trading, surpassing $79 at one point, but have since approached its initial offering value of $49. 95.
The company’s inventory closed at $48. 66 after Monday’s sell-off, and as a result, many early investors are taking a hit.
Industry analysts have compared the fervor around Florida-based Trump Media to the meme inventory craze, which propelled the inventories of struggling corporations like GameStop and movie theater chain AMC Entertainment to exorbitant highs in 2021.
On Monday, shares of so-called meme stocks also fell, with GameStop and AMC falling more than 4% and 15%, respectively, at the close of trading.
And Reddit, a company that recently went public and has since been embroiled in frenzied stock comparisons, fell about 7%.
Trump’s social media site was seen as a potential monetary lifeline for the presumptive Republican presidential nominee as he faces an unprecedented wave of legal and monetary challenges.
In addition to four criminal cases, each involving his beloved lawyers, Trump faces a civil penalty of more than $454 million for fraud after a New York state ruling ruled that he and other members of his firm had conspired for years to deceive banks. , insurers, and others inflating their wealth into monetary statements.
Last week, Trump received a pardon when an appeals court reduced the amount he needed to suspend collection while he appealed for $175 million, which Trump said he would cover, but he has to find the cash by Thursday.
In the past, Trump had posted $92 million bail after being found guilty of sexual assault and defamation of E. Jean Carroll.
The goal is to ensure that if he survives the calls, he will get praise from the jury for his verbal attacks.
It’s unclear exactly how many coins Trump will have left by the end of the week. Trump said he has about $294 million worth of coins or coin equivalents in his last annual coin for the fiscal year ending June 30, 2021.
After that, according to New York state lawyers, he added about $186. 8 million by promoting his Washington hotel lease in May 2022 and the rights to run a golf course in New York in June 2023.
Trump Media’s access to the public market could also earn the former president billions in paper money, although there has yet to be a timely payment. In Monday’s filing, the company announced no changes to the provision that prevents insiders like Trump from promoting their stock for six months after their stock market debut.
Still, some experts have speculated that the board could simply waive Trump’s disposition and allow him to sell shares to cover his legal fees.
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