Trump’s media firm released the results. Shares fell sharply

Trump’s media firm released the results. Shares fell sharply
Trump’s media firm released the results. Shares fell sharply
--

After former US President Donald Trump’s company published last year’s results on Monday, shares weakened significantly, Reuters reported. While shares of Trump Media & Technology Group (TMTG) “climbed” by tens of percent to $80 just days after going public last week, on Monday the value fell by 21 percent.

Despite the drop in shares, however, the company has a market value of six billion dollars. However, Monday’s publication of sales “cost” Trump one billion. This is the value by which the politician’s net worth decreased in a single day, as reported by the website of the American television channel CNN.

The company that runs, for example, the Truth Social social network, lost more than 58 million dollars last year, which is almost 1.4 billion crowns. At the same time, sales last year reached approximately four million dollars, which is 2.5 million more than the previous year.

However, Trump’s company, in which the politician owns more than 50 percent, will not be able to meet its financial obligations due to losses. “As of December 31, 2023 and 2022, management has substantial doubt that TMTG will have sufficient funds to meet its obligations as they become due, including obligations related to notes previously issued by TMTG,” the company said in its annual report .

According to the website of the American channel CNBC, high interest costs, which cost the company almost 40 million dollars, are responsible for most of the net loss. The company’s management expects losses in the following period as well and warns shareholders that Trump’s social involvement may also affect the value of the shares.

It is far from X, Instagram and TikTok

TMTG entered the stock exchange on March 26, after a merger with the so-called “shell company” Digital World Aquisition Corp., which was created for the purpose of connecting with other companies.

“TMTG has enjoyed a huge rise thanks to hype and enthusiasm, but it is still a long way from being a true competitor to social media X (Twitter), Instagram, TikTok and other platforms,” ​​Running Point Capital analyst Michael Ashley Schulman told Reuters .

The merger of TMTG with Digital World was supposed to be one of the ways for Trump to get money quickly. However, although Trump is the majority owner of the company, he is not allowed to trade shares for six months after going public.

The former American Republican president and likely candidate in this year’s elections was supposed to pay $454 million by last Monday for overvaluing his assets in order to deceive creditors.

After Trump appealed, the court ordered him to pay $175 million, which he had to pay by Thursday to stop the enforcement, the AP reported. The ex-president paid the money. But now he faces four more criminal proceedings, from which he will not get out cheaply.

The article is in Czech

Tags: Trumps media firm released results Shares fell sharply

-

PREV April began with a strong selloff in the cryptocurrency markets. Bitcoin halving is expected – FAEI.cz
NEXT The new chip is intended exclusively for the so-called killers of high-end smartphones