Rama Krishna Sangem
Former US President Donald Trump’s financial fortunes are in up and downs. After posting record gains only last week, his financial net worth tumbled following a revelation that his own Truth Social platform was in deep losses. Trump’s holding in firm Truth Social plummeted after the company reported a loss and an auditor cast doubt on its future
After a blockbuster debut on Nasdaq Donald Trump’s Truth Social has failed to impress the stock markets. Shares in Trump Media & Technology Group, the parent company of Truth Social, have fallen by 21.5% as investors closely examined its business fundamentals.
Amidst the downturn Trump’s stake in the entity also took a hit of more than $1 billion on Monday. This came after the social media company disclosed a loss of $58.2 million last year and its auditor, BF Borgers of Colorado, expressed “substantial doubt” about its ability to stay in business.
He posted gains last week
Last week, Trump’s considerable stake in the firm was valued at approximately $4.88 billion. However, following Monday’s market decline, its value dropped to about $3.83 billion. On first day of trading the stock had jumped more than 30%, making Trump’s shares worth more than $5.2 billion.
That early enthusiasm didn’t last. The stock fell more than 6% last Thursday and another 21% on Monday, reducing the value of the former president’s stake to $3.8 billion. Despite an increase in sales to $4.13 million in 2023 from $1.47 million in 2022, the figures highlight the limited scale of Trump Media’s operations and the extent of its losses.
BF Borgers of Colorado, in the company’s filings on Monday, stated that the losses “raise substantial doubt about its ability to continue as a going concern”. Trump Media acknowledged that it might face “greater risks” compared to other social media platforms “due to the focus of our offerings and the involvement of President Trump”.
Devin Nunes, CEO of Trump Media, expressed enthusiasm about operating as a public company. He stated, “Closing out the 2023 financials related to the merger, Truth Social today has no debt and over $200 million in the bank, opening numerous possibilities for expanding and enhancing our platform.
It is not yet known whether this slide in his personal wealth will have an impact on his electoral prospects in the US presidential race.
