In 2023, Truth Social, the social media platform owned by Trump Media & Technology Group, experienced a significant loss of over $58 million and generated only $4.1 million in revenue. This marks a drastic decline from the $50.5 million profit it made in 2022, and has raised concerns among experts who question the company’s multibillion-dollar valuation on Wall Street.
Trump Media reported a loss of $58.2 million in 2023, compared to the $50.5 million profit it made in the previous year. Despite this financial struggle, Trump Media has maintained a valuation of up to $11 billion on Wall Street, which has been compared to the meme stock craze.
The decline in users at Truth Social has also posed a challenge for the company and its main product, with monthly active users in the US on iOS and Android dropping by 51% year-over-year to 494,000 in February. In contrast, X (formerly Twitter) and Threads have significantly more users, with X having 75 million monthly active US users.
After completing its long-delayed merger last week, Trump Media is expected to receive around $300 million in cash from investors seeking to take advantage of its multibillion-dollar valuation. However, despite receiving this financial boost, doubts about the company’s ability to survive have arisen among accountants who warn of potential closure unless the merger goes public as planned.
