The share price of Trump Media took a sharp dive on Monday following the company’s disclosure of a significant net loss for 2023.
According to a filing with the Securities and Exchange Commission, Trump Media reported a net loss of $58.2 million on revenue of just $4.1 million for the year 2023.
This substantial loss caused the company’s shares to plummet by more than 25% around 1:08 p.m. ET.
Despite the considerable drop in share price, Trump Media’s market capitalization still stood at over $6.8 billion, reflecting the company’s high valuation even in the face of financial losses.
Cash on hand
The filing revealed that much of the net loss can be attributed to $39.4 million in interest expense.
Additionally, the company ended 2023 with just $2.7 million in cash on hand, further highlighting its financial challenges.
Trump Media warned shareholders that it anticipates continued operating losses for the foreseeable future.
The company’s involvement with former President Trump could also pose additional risks, as outlined in the filing.
Notably, Trump owns a significant portion of Trump Media shares, representing more than half of his total net worth, and stands to receive millions more in shares over the next three years if certain stock price benchmarks are met.
