Donald Trump’s newly public media company released financials today that underscore the vast gap between its revenues and market cap after completing a reverse merger with Digital World Acquisition. The stock has been trading only a week on the Nasdaq under the ticker DJT, Trump’s initials.
Trump Media & Technology Group lost more than $58 million on $4.1 million in revenue during 2023, according to an 8-K filed this morning. The losses are so severe that the company’s accountants warned they “raise substantial doubt about its ability to continue as a going concern.”
The company also lost top-line momentum, generating only $751,500 in Q4. It had exceeded $1 million in Q3.
The vast majority of TMTG’s losses are connected to interest expenses, but it also operated at a $16 million deficit for the year.
Money from Digital World’s trust that poured into TMTG makes the media company financially viable for a while, but it’s clear that the equity value has no relation to the underlying business.
Shares fell in early trading this morning, but the company’s market cap remains above $6 billion after peaking at around $9 billion briefly last week. Read more.
