Less than a week after its public debut, shares of Trump Media tumbled after reports of huge losses
Trump Media makes its money exclusively through advertising on Truth Social.
Shares of Donald Trump's social media company fell by more than 20% on Monday, less than a week after it began publicly trading under the DJT ticker.
Experts had warned the stock was bound to tumble, as its main product - Truth Social - loses users and burns cash.
Shares of Trump Media, which makes its money exclusively through advertising on Truth Social, are still up nearly 200% so far this year.
Mr Trump holds a nearly 60% ownership stake in the company and stands to earn a billion-dollar windfall when he cashes out his shares - though he is legally barred from doing so for another six months unless the company's board grants him a waiver.
According to the financial filing, Trump Media paid about $40m in interest expenses and $16m in operating losses in 2023.The company said its management had "Substantial doubt" that it "Will have sufficient funds to meet its liabilities as they fall due".
Truth Social launched in February 2022, about one year after the former president was banned from Twitter and Facebook in the aftermath of the violent riot at the US Capitol.
While Mr Trump's accounts on both platforms have since been reinstated, he has continued to use Truth Social as the main avenue for his social media posts.
Truth Social has claimed it has about 8.9 million sign-ups, but it has declined to share the commonly disclosed performance metrics that could give shareholders a better sense of its operations.
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