Donald Trump, the controversial businessman turned politician, has faced yet another setback in his financial empire. After the stock price of his company, DJT, plunged dramatically, Trump's net worth has been estimated at $1 billion. This significant decrease in wealth has raised questions about the stability of Trump's business ventures and his ability to maintain his lavish lifestyle.
Despite this setback, Trump remains defiant and continues to project an image of success and wealth. His supporters argue that this is just a temporary setback and that he will bounce back stronger than ever. However, critics point to this latest development as evidence of Trump's risky business practices and lack of financial acumen.
The drop comes after Trump Media & Technology Group reported it had lost nearly $60m (£48m) last year while only bringing in around $4m in revenue.
The price plunge caused the former president's net worth to shrink by $1bn, according to Bloomberg.
Shares had surged last week, giving the company an $11bn valuation.
Trump, who owns 78.5 million shares in Trump Media, about 57% of all outstanding shares, accordingly had his stake in the social media venture slide from its peak of $6.25 billion to Monday’s $3.86 billion.
For one thing, TMTG, which owns the conservative Twitter copycat Truth Social, makes basically nothing. According to a new financial filing from the company released on Monday, its total revenue was $4.1 million in 2023. Extrapolate that out, and the stock is trading at something like 2,000 times the company's annual revenue. That is, um, high. Apple, for example, trades at about seven times its total revenue. And given TMTG's paltry revenue, it actually lost $58 million last year.
Trump's company says it has bigger plans ahead, such as growing Truth Social and developing "one or more additional cutting-edge products and/or services" to complement Truth, including some sort of video-streaming situation that "provides a 'home' for cancelled content creators." What exactly this might look like, or how many people would flock to it, isn't clear.
The stock came under pressure Monday after the company revealed new details about its financials in a filing with the Securities and Exchange Commission. Trump Media lost $58.2 million last year, compared with $50.5 million the year before. Meanwhile, annual revenue amounted to $4.1 million, up from $1.5 million.
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