Donald Trump’s businesses don’t have the best of track records:Trump Steaks, Trump Airlines, and several of his casinos have gone out of business.
And now, things aren’t looking good for Trump Media & Technology Group, the parent company of his personal social media platform Truth Social. The company’s SEC filings, released Monday, show just $4.1 million in revenue—and a staggering loss of more than $58 million.
Within hours of the filings being released, the news of the company’s losses led the stock price to drop by more than 20 percent in midday trading, with the company’s market value standing at more than $6 billion, just a little more than Trump Media’s value when it debuted on the stock market last week.
And the worst may not be over. The company “expects to continue to incur operating losses and negative cash flows from operating activities for the foreseeable future, as it works to expand its user base, attracting more platform partners and advertisers,” the filing states.
The filing also included a note from an independent accounting firm, Colorado-based BF Borgers CPA PC, warning that Trump Media’s “operating losses raise substantial doubt about its ability to continue as a going concern.”
Trump Media completed a merger two weeks ago with Digital World Acquisition Corporation, a move that was expected to bring a financial windfall to the former president. However, Trump won’t be able to count on this deal to just yet to help pay down his many legal bills.
He’ll have to wait six months to legally sell his 72 million shares in the company. Experts have warned, however, that the stock’s value can’t be counted on. It will be subject to how strong an individual investor considers Trump’s name.
The post Investors Are Bailing as Fast as They Can From Trump’s Broke Company appeared first on New Republic.
