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   From: super70s@super70s.invalid   
      
   Trump's net worth plunges $1 billion as his media stock tumbles   
   Matt Egan   
   CNN   
   4 minute read   
   Updated 4:25 PM EDT, Mon April 1, 2024   
      
   New York CNN  -- Shares of Truth Social owner Trump Media & Technology   
   Group plunged Monday after the company disclosed that it lost more than   
   $58 million and generated very little revenue in 2023. Former President   
   Donald Trump is the company's majority shareholder, and his net worth   
   tumbled by more than $1 billion Monday as a result.   
      
   The figures underscore why some experts warn Trump Media's   
   multibillion-dollar valuation defies logic and is reminiscent of the   
   meme stock craze.   
      
   In a regulatory filing on Monday, Trump Media said it lost $58.2   
   million in 2023, compared with a profit of $50.5 million in 2022.   
      
   The Truth Social owner generated just $4.1 million in revenue, although   
   that was up from $1.5 million in 2022.   
      
   Not only that, but revenue tumbled 39% year-over-year in the fourth   
   quarter to just $751,500. That's not what investors want to see from   
   any start-up, especially one valued at these levels.   
      
   Shares of Trump Media tumbled 21% Monday following the new filings,   
   though they are still up nearly 200% so far this year.   
      
   Former President Donald Trump owns a commanding stake of 78.8 million   
   shares in the newly public company. At Monday afternoon's prices, that   
   stake is now worth approximately about $3.8 billion. This represents a   
   massive boost to Trump's net worth, though it is down significantly   
   from a peak of about $6.3 billion just last week.   
      
   The losses disclosed Monday are so severe that Trump Media's   
   accountants warned at the time they "raise substantial doubt about its   
   ability to continue as a going concern," which is Wall Street for: We   
   may not be able to stay in business. That warning echoes one made in   
   November when accountants said Trump Media might not survive unless it   
   soon completes its merger to go public.   
      
   That long-delayed deal was completed last week, paving the way for   
   Trump Media to receive an influx of approximately $300 million in cash.   
   The company can now use those funds to pay down debt and, importantly,   
   build out its infrastructure.   
      
   "I believe the $300 million of cash should remove this 'going concern'   
   risk," said Matthew Kennedy, senior IPO strategist at Renaissance   
   Capital.   
      
   Michael Ohlrogge, an associate professor at NYU School of Law, told CNN   
   in an email that it will be more telling if accounts are still giving a   
   "going concern" warning now that the merger has been completed because   
   the cash infusion should give the company a "decent bit more runway."   
      
   "Although it won't take that long to burn through the cash it   
   raised...if they keep losing it at the rate they are," Ohlrogge said,   
   adding that it's possible Trump Media can raise more cash by selling   
   additional stock.   
      
   Even though Trump Media is losing money and generating scant revenue,   
   Wall Street has valued the company by as much as $11 billion based on   
   the stock's closing price Friday, according to Renaissance Capital. By   
   Monday afternoon, that valuation tumbled to about $8.8 billion   
      
   While Trump Media made just $4.1 million in revenue in 2023, rival X   
   (formerly known as Twitter) raked in more than 100 times that much --   
   $665 million -- in 2013, ahead of its initial public offering in   
   November 2013. Twitter also generated just over $5 billion in revenue   
   in the final year before it was taken private by Elon Musk.   
      
   In fact, Truth Social's financials are comparable to that of The   
   Messenger, the upstart digital news outlet that imploded earlier this   
   year. Citing an investor deck, CNBC reported in January that The   
   Messenger posted 2023 revenue of $3.8 million and a net loss of $43   
   million.   
      
   The problem for Trump Media is its main product -- Truth Social -- is   
   shrinking.   
      
   Monthly active US users on iOS and Android plunged in February to   
   494,000, down 51% year-over-year, according to Similarweb. By   
   comparison, X has 75 million monthly active US users. Even Threads has   
   more than 10 times as many users as Truth Social, according to   
   Similarweb.   
      
   "2024 is the make-or-break year for this company," said Kennedy. "For   
   TMTG the thing that matters now is getting in front of the cash cannon   
   that is the 2024 presidential election. And the company does have one   
   notable advantage. Trump-backed super PACs have raised millions. Where   
   do you think they'll spend their digital ad buckets?"   
      
      
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