Trump's SNS 'Truth Social' Posts 80 Billion Won Loss Last Year... Stock Price Plummets 20%

Donald Trump, the former U.S. president confirmed as the Republican candidate in the upcoming November U.S. presidential election, created the social networking service (SNS) 'Truth Social.' Its parent company recorded a net loss close to $60 million last year. The company, which debuted on the New York Stock Exchange last week and saw its stock price rise by about 50%, plunged more than 20% in a single day.

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On the 1st (local time), Truth Social's parent company, Trump Media & Technology Group (TMGT), announced annual revenue of $4 million (approximately 5.4 billion KRW) and an operating loss of $58 million (approximately 78.6 billion KRW) for 2023.

The loss last year significantly increased compared to the $50.5 million (approximately 68.4 billion KRW) recorded in 2022. Interest expenses amounted to $39.4 million (approximately 53.4 billion KRW), accounting for most of the loss.

Earlier, TMGT disclosed that in the nine months of last year before its listing, it had revenue of $3.4 million (approximately 4.6 billion KRW) and a net loss of $9 million (approximately 1.21 billion KRW). Although it was well known before the listing that TMGT was a deficit company, supporters of former President Trump actively purchased shares, causing TMGT's stock price to surge. It jumped about 50% just after its listing on the 26th of last month.

However, immediately after the earnings announcement on this day, TMGT's stock price was trading at $49.08 per share as of 3:46 PM, down 10.79% from the previous trading day.

Meanwhile, TMGT warned investors through the announcement that if former President Trump faces unfavorable outcomes in lawsuits, it could negatively impact the company.

The market anticipates that Trump, who faces astronomical litigation costs due to judicial risks, may sell TMGT shares. In principle, former President Trump cannot sell shares for six months after the listing, but it is expected that he will seek ways to liquidate his stake through the TMGT board of directors, which is composed of his close associates.

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