The value of Donald Trump’s stake in Truth Social fell by more than $1bn on Monday after the social media company revealed it lost $58.2m last year and an auditor disclosed “substantial doubt” over its ability to continue operating.
Shares in Trump Media & Technology Group, the owner of Truth Social, dropped 21.5% as investors scrutinized the fundamentals of its business.
The former president’s vast stake in the firm was worth about $4.88bn on paper after its extraordinary stock market debut last week . After Monday’s sell-off, it was valued at about $3.83bn.
Trump Media generated sales of just $4.13m in 2023, according to regulatory filings.
While over $4m in sales marks significant growth from $1.47m in 2022, the previous year, it underlines the small scale of Trump Media’s operation – and the depth of its losses.