Shortly after the IPO

Trump’s Truth Social shares plummet by billions

Trump founded his own platform because he had been banned from Twitter.(Bild: AP)

The IPO of his social network Truth Social last week made former US President Donald Trump four billion US dollars richer in one fell swoop - at least on paper. However, the company has now lost a lot of value.

On Monday, the Trump Media & Technology Group (TMTG), the company behind Truth Social, presented its business figures. With a turnover of around four million, TMTG posted a loss of 58 million US dollars (approx. 54 million euros) last year.

Trump is the largest shareholder
Following the publication of the figures on Monday, the share price fell by more than a fifth at times. This meant that Donald Trump, the largest shareholder, lost more than one billion US dollars on paper: The value of his shares fell from just under 4.9 billion to 3.8 billion. The share is listed on the stock exchange under the abbreviation DJT - in reference to Trump's initials. The presidential candidate holds a stake of almost 60 percent in the company.

In 2022, Trump's media company made an annual profit of USD 50.5 million thanks to a tax credit. The loss in 2023 shows that Truth Social is still struggling to attract advertising revenue. Even though the company was able to generate more revenue compared to the almost 1.5 million dollars in 2022.

Mandatory warning issued
In view of the high losses in the current business, the company warned that it could run out of money. This is a standard mandatory warning to investors in the USA, which is not necessarily followed by bankruptcy.