The stock of Truth Social, the social media platform created by former President Donald Trump, and its parent company, Trump Media & Technology Group (TMTG), plunged by over 21% following the news that TMTG lost $60 million last year.
On March 1st (local time), Truth Social’s stock recorded $48.66, a 21.47% drop from the previous trading day.
According to documents submitted by Truth Social to the Securities and Exchange Commission (SEC), the company revealed a net loss of $60 million last year and a mere $4 million in revenue.
Experts unanimously agree that Truth Social will take considerable time to generate stable profits as a startup.
Since its inception, Truth Social has gathered about 9 million users. Based on the current stock price, Trump owns approximately 60% of Truth Social’s shares, which are worth around $3 billion.
Riding on Trump’s popularity, Truth Social’s stock price skyrocketed after its backdoor listing last week. This was due to a mass purchase of Truth Social stocks by voters who supported him.
However, the stock price plummeted on this day as the company’s real value was revealed.