Donald Trump’s Truth Social craters to $300m loss amid market manipulation claims

Trump Media and Technology Group (TMTG), owner of Donald Trump’s social media platform Truth Social, reported losses of over $300m (£236m) in the first quarter of 2024.

The company of the former US president, who is running for a second term, posted a net loss of $327.6m (£257.6m) from January to March, a sharp increase from the $210,300 loss reported during the same period last year.

TMTG blamed most of the quarterly losses on non-cash expenses, which included clearing prior liabilities before its recent merger with Digital World Acquisition, a shell company, in late March.

Merger closing costs totalled over $6m (£5m) contributing to a first quarter operating loss of $12.1m (£9.5m), quadruple the operating loss from the same period last year.

TMTG’s main asset Truth Social generated just $770,500 in sales over the quarter.

After TMGT’s Wall Street debut in March, the stock plummeted more than 70 per cent, slashing billions from Trump’s net worth. Since mid-April it has clawed back some gains.

Chief executive of the company Devin Nunes, a former Republican congressman, accused hedge funds of market manipulation to drive down the share price. On Monday, Nunes stated that the company remains “well-capitalized.”

“Our positive working capital allows us to explore and pursue a wide array of initiatives and innovations to build out the Truth Social platform, including potential mergers and acquisitions,” he said.

TMTG reported a $58m loss for 2023, despite its valuation soaring to more than $8bn upon its stock market debut .

Some analysts have compared TMTG to “meme stocks,” whose valuations are driven more by public enthusiasm than financial performance or business prospects. Its market capitalisation currently sits around $6.6bn.

Trump, who created his own social media platform following his bans from Twitter and Facebook in 2021, holds a 57.3 per cent stake in TMTG.