Fox News host Maria Bartiromo confronted Truth Social CEO Devin Nunes on Sunday about former President Donald Trump's media company's recent $4 billion loss.
A regulatory filing filed with the Securities and Exchange Commission (SEC) on Monday revealed that Truth Social, in which Trump owns nearly 60%, generated revenue of just over $4.1 million in its most recent year of operation, but had costs of $58.2 million. . It revealed an operating loss of $15.96 million.
Additionally, shares of Trump Media and Technology Group (TMTG), whose primary asset is the social media platform Truth Social, fell 21% on Monday, closing at $48.66, wiping billions off its value. Shares have since risen slightly to $48.81, when the stock market closed on Wednesday. Shares initially rose above $78 a share when they debuted on the stock market last week under the symbol “DJT,” closing their first day of trading up 16 percent at $57.99, giving the company a valuation of $11 billion.
On Sunday, Bartiromo discussed Truth Social's recent financial situation, noting that the company has lost $4 billion in market value amid a decline in the company's stock.
President Trump's media company has had a rollercoaster couple of weeks. The stock finished down nearly 30 percent this week. The company, which operates Trump's Truth Social platform, lost $4 billion in market value after gaining $6 billion in value during its Nasdaq debut. Two weeks ago,” she said.
He then asked Bartiromo Nunes, a former California GOP congressman, when he expected Truth Social to become profitable.
“It's important to remember that these numbers are based on what was the longest IPO in history, so we were over-regulating. So if you actually look at the cost, we've built Truth Social… for a fraction of what many of these tech dinosaurs Big is what businesses were built for. So, even if you take the ridiculous cost that it took us to get to this point, we're in a good position. Because we don't have any debt. We're coming out of this with no debt, a platform that really works. “This is really good, and this is communicating with Millions of people. Then we have $200 million in the bank,” Nunes replied.
He added: “We're looking at the entire ecosystem whether that's through acquiring technology or whether that's through building technology. Those are all the issues that we're focusing on which includes, you know, making sure that we address the three-year plan here.” Where we can go out and put this whole company together where we're not dependent on big technology.”
Newsweek I reached out to a Trump spokesperson via email for comment.
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Nunes' comments come after B.F. Borgers of Colorado, the company's auditor, said the losses “raise significant doubt about its ability to continue as a going concern.”
However, despite the filings, Trump reiterated Nunes' previous statement about the company's condition where he claimed on Thursday that the company had “$200 million in cash and zero debt,” and said it was “very good for a startup and growing company.” fast.”
Continuing his defense on Truth Social, Trump wrote: “I think Truth is amazing! First of all, it's very powerful, with over $200 million in cash and no debt. Most importantly, it's the primary way I can spread the word For better or worse, people want to hear what I have to say, perhaps, according to experts, more than anyone else in the world.
However, Todd Landman, professor of political science at the School of Politics and International Relations at the University of Nottingham in the UK, previously said: Newsweek Truth Social needs to gain more users to become successful.
“To put this in perspective, Amazon was founded in 1994 and didn't show a profit until 2001, and since then has been growing steadily with significant growth rates and profits. Facebook was founded in 2004 (as TheFacebook) and didn't turn a profit until 2004.” It has significantly expanded its user base and diversified its business model, especially opening up its own marketplace and advertising space. So the potential success of Truth Social (and DJT stock) depends on attracting a much larger number of users and providing an attractive mix of “content, functionality and services,” he said.
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