Shares of Trump Media fell more than 10% Tuesday before recovering slightly to close at $44.19 a share, a one day drop of 8.6%. The shares slid hours after the Truth Social app owner disclosed a net loss of $327.6 million in the first quarter of 2024, on revenues of just $770,500 .
Trump Media, whose majority shareholder is former President Donald Trump, revealed the loss Monday after markets closed, as part of its first earnings report since company began public trading under the DJT ticker in March through a merger with a shell company.
The loss for the three-month period ending in March equates to a net loss of $3.61 per share attributable to common stockholders, according to the earnings report.
The report attributed Trump Media’s loss to noncash expenses, including “the conversion of promissory notes, and the associated elimination of prior liabilities” that preceded its merger with Digital World Acquisition Corp.
Trump Media said the bulk of its scant revenue came through its “nascent advertising initiative.”
“At this early stage in the Company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue,” it said in the earnings report.
The company’s share price has whipsawed since it began trading publicly in late March. After scraping a high of more than $79 per share in its debut, the stock suffered a weekslong slide that erased the majority of its gains.
In recent weeks, however, the share price has partially recovered, and as of Tuesday morning, hovered around $44.
Despite the company’s lack of significant revenue, it currently boasts a market capitalization of roughly $6 billion.
In its quarterly report posted Monday afternoon, Trump Media noted that before going public, it “historically incurred operating losses and negative cash flows from operating activities.”
The company said it “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.”
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