Current:Home > MyTrump Media auditor raises doubts about Truth Social's future in new filing -Elevate Capital Network
Trump Media auditor raises doubts about Truth Social's future in new filing
View
Date:2025-04-15 00:42:09
A new regulatory filing from Donald Trump’s social media company shows an auditor has raised concerns about the company’s future.
Trump Media, the company behind the social media platform Truth Social, went public last week after merging with shell company Digital World Acquisition. The stock’s price has been volatile since then, shooting up as high as $79.38 on its first day of trading Tuesday before closing below $50 Monday.
Experts have said the company is overvalued compared with other social media platforms, thanks in part to investments by Trump supporters. Now, a new regulatory filing shows that an independent accounting firm is questioning the company’s longevity.
In a letter sent to Trump Media’s shareholders and board on March 25 – one day before Trump Media was listed on the Nasdaq – accounting firm BF Borgers CPA PC noted that the company’s operating losses “raise substantial doubt about its ability to continue as a going concern.”
Trump Media made about $4 million in revenue and lost more than $58 million in 2023, according to the recent filing. Despite the losses, its market capitalization is currently over $6.5 billion.
Trump Media expects to continue to operate at a loss
The company acknowledged potential "near-term margin pressure" from increased marketing expenses and insurance costs after going public, and said it expects to operate at a loss “for the foreseeable future” as it works to expand its user base.
DJT stock hits turbulence:More volatility ahead for Trump's high-flying Truth Social
Truth Social had about 5 million desktop and mobile visitors in February, according to data and analytics company Similarweb. Meanwhile, Facebook has about 3 billion monthly active users.
Trump Media also notes in its filing that the company may be subject to “greater risks” than typical social media platforms because of former President Trump’s involvement. The company highlighted potential harassment of advertisers and hacking as potential risks.
Trump Media’s “success depends in part on the popularity of our brand and the reputation and popularity of President Trump,” the filing reads. The brand's value "may diminish if the popularity of President Trump were to suffer.”
Shares closed at $48.66 Monday, down 21.5%.
Contributing: Jessica Guynn
veryGood! (1)
Related
- 2 killed, 3 injured in shooting at makeshift club in Houston
- Jelly Roll reflects on his path from juvenile detention to CMT Award winner
- A Nigerian transgender celebrity is jailed for throwing money into the air, a rare conviction
- Hawaii-born Akebono Taro, Japan's first foreign-born sumo wrestling grand champion, dead at 54
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- Shaping future investment leaders:Lonton Wealth Management Cente’s mission and achievements
- 85-year-old Idaho woman who killed intruder committed 'heroic act of self-preservation'
- 'Brandy Hellville & the Cult of Fast Fashion' doc examines controversial retailer Brandy Melville
- DeepSeek: Did a little known Chinese startup cause a 'Sputnik moment' for AI?
- Louisiana lawmakers reject minimum wage raise and protections for LGBTQ+ people in the workplace
Ranking
- Intellectuals vs. The Internet
- When should I retire? It may be much later in life than you think.
- O.J. Simpson's death may improve chances of victims' families collecting huge judgment, experts say
- Arizona's abortion ban likely to cause people to travel for services in states where it's still legal
- B.A. Parker is learning the banjo
- Flash flooding sweeps into the Pittsburgh area and spurs numerous water rescues
- $25 McDonald's bundle in viral video draws blame for California minimum wage hike
- Shohei Ohtani's interpreter Ippei Mizuhara charged with stealing $16 million from MLB star
Recommendation
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Ethics Commission member resigns after making campaign contributions
Rupert Murdoch is selling his triplex penthouse in New York City. See what it looks like.
Wisconsin woman in Slender Man stabbing will remain in psychiatric hospital after release petition denied
Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
Julia Fox's Latest Look Includes a Hairy Boob Bra and Closed Vagina Underwear
US, Japan and South Korea hold drills in disputed sea as Biden hosts leaders of Japan, Philippines
Judge splits Sen. Bob Menendez's case from his wife's, due to her medical issues