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Donald Trump's social media company lost US$58 million last year. Freshly issued shares tumble

The download screen for Truth Social app is seen on a laptop computer, Wednesday, March 20, 2024, in New York. Shareholders vote Friday on a deal to merge Trump Media & Technology Group, which runs Truth Social, and Digital World Acquisition Corp.  (AP Photo/John Minchillo) The download screen for Truth Social app is seen on a laptop computer, Wednesday, March 20, 2024, in New York. Shareholders vote Friday on a deal to merge Trump Media & Technology Group, which runs Truth Social, and Digital World Acquisition Corp. (AP Photo/John Minchillo)
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Less than a week after a flashy stock market debut, Donald Trump's social media company is disclosing that it lost nearly US$58.2 million in 2023.

Losses in 2023 for Trump Media & Technology Group — whose flagship product is Truth Social — mark a stark decline compared with the profit of US$50.5 million that the former president's company reported for 2022, according to a regulatory filing Monday.

Revenue for Trump Media topped just over US$4.13 million in 2023, the SEC filing shows, although that's up from US$1.47 million in 2022.

After merging with with a blank-check company called Digital World Acquisition Corp., Trump Media began trading Tuesday on the Nasdaq under ticker symbol DJT. It's been a volatile ride.

Trump Media's shares soared in their first couple of days of trading — surpassing US$79 at one point Tuesday — but have since fallen closer to their initial offering price of US$49.95. As of midday Monday, Trump Media's stock plunged more than 23 per cent to below US$48, meaning a lot of early investors are taking a hit.

Industry analysts have compared the fervor around Trump Media to the meme stock craze, which notably boosted shares of struggling companies such as GameStop and the movie chain AMC Entertainment to exorbitant heights in 2021.

On Monday, shares for these so-called meme stocks slid as well, with GameStop and AMC down more than seven  per cent and 11 per cent, respectively. And Reddit, another company that recently went public and looped into meme stock frenzy comparisons, slumped more than six per cent.

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