President Donald Trump's social network, Truth Social, lost a staggering amount of money last year.
As CBS News reports, the platform's parent company Trump Media and Technology Group revealed in a Securities and Exchange Commission filing last week that it lost a staggering $400.9 million in 2024.
Annual revenue dropped to an abysmal $3.6 million, while the meme stock's losses ballooned more than six-fold compared to 2023. As Bloomberg points out, that means the company's deficit has risen to a staggering $2.9 billion.
Despite the immense losses, TMTG's market capitalization is still almost $6.5 billion, highlighting it's astronomically overvalued.
The company has long struggled to justify its existence given the lack of a coherent business and has largely been seen as a proxy for the president's popularity instead.
It also serves as a funhouse mirror of Trump's political health; its shares plummeted 22 percent following his election win in November, suggesting investors were becoming wary of Trump and his collaborators cashing out. Trump, who has previously promised that he's "not selling," transferred his controlling proportion of shares, which were worth around $3.5 billion as of Friday, to a trust as a "bona fide gift" to his eldest son, Donald Trump Jr., in December.
Despite its multibillion-dollar valuation, Truth Social has struggled to attract new users. As of November, the platform had 355,000 daily active users — according to research firm Apptopia since the company doesn't report "traditional key performance indicators" — which pales in comparison to virtually all its competitors like Facebook.
The value proposition over those alternatives is also increasingly dubious; Trump himself has increasingly taken to multi-hyphenate billionaire Elon Musk's X-formerly-Twitter to blast out hastily written missives, to the detriment of his own platform.
Apart from his failing social media network, Trump also launched a meme coin shortly before he was inaugurated, a cash grab that left most investors in the red — and infuriated much of the crypto community to boot.
Whether Trump Jr. will have what it takes to turn TMTG around and stop it from hemorrhaging hundreds of millions of dollars remains to be seen. The company recently applied for several trademarks for a line of exchange-traded funds (ETFs), in an apparent effort to provide a "competitive alternative to the woke funds and debanking problems that you find throughout the market," according to CEO Devin Nunes.
TMTG also rolled out a streaming service called "Truth+" in October, but how many people have tuned in to watch any of the purportedly "uncancellable" content on the app remains to be seen.
More on Truth Social: Truth Social Stock Is Crashing Even Though Trump Won
Share This Article