Scandal-ridden Donald Trump finally got that financial boost he so desperately needed just last week when his Truth Social company — the social media platform he founded after getting booted and banned from Twitter over the J6 Capital riot — finally completed its merger and went public.
The former president holds a whopping 78 million-plus shares in the Trump Media & Technology Group firm that are now worth literal billions following the initial round of sales of the company’s stock.
However, it’s not all sunshine and rainbows and Rolls Royces for Donald Trump.
According to a rather brutally dismal SEC filing from the company, the basic fundamentals of Trump Media & Technology Group come nowhere near justifying the price of the stocks we’re seeing now. As it turns out, the firm brought in an embarrassingly measly $4.1 million in revenue in 2023 while suffering a massive net loss to the tune of more than $58 million.
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Suffice it to say, the math is not adding up in Trump’s favor.
The SEC filing shows that the greatest majority of those expansive losses are a direct result of the company’s massive amount of debt. However, even when putting the debt aside, the operating costs of Truth Social still come in approximately 4 times higher than the revenue that the platform is bringing in.
It’s undoubtedly certain at this point that Trump was and is relying on a large infusion of liquid cash from his millions of shares in the social media company’s stock to help relieve some of the mounting pressures from his expansive legal fees and fines that continue to rack up in connection to his slew of civil and criminal cases.
However, experts are already beginning to question just how much value, if any at all, those shares will have for him in the end.
Trump is barred from selling off his shares for liquid cash in hand for six months and analysts and experts have already begun to predict that they won’t be worth much by then, especially if there’s a Trump-led-sell-off, which many believe will, in itself, cause the stock to plummet into the floor.
Former New York Assistant Attorney General Adam Pollock recently argued that Trump’s media company is “essentially worthless.”
Even Fox Business host Stuart Varney weighed in on the matter with a prediction that the value of the stocks will be directly correlated to the success, or lack thereof, of Trump’s presidential bid — with the suggestion that the stocks will plummet if it begins to look like Donald will be unsuccessful in returning to the White House.
“I think it’s almost like a meme stock, and that’s the way it’ll play out,” Varney said. “It’s a bet on whether Trump wins or loses in November of this year. If he loses, I think the stock goes way down. If he wins or looks like he’s going to win, I think the stock does well because then Truth Social will do well.”
Trump’s desperation for cash has become quite palpable in recent months, as his debts grow out of control, leaving him to hawk everything from NFTs to gold shoes to Bibles.
Featured image via Political Tribune Gallery
