Trump Media’s Losses Spiked Last Year On $3.6 Million In Sales

Forbes - Feb 15th, 2025

Trump Media & Technology Group, the media company founded by President Donald Trump, has reported a significant net loss of nearly $401 million on sales of $3.6 million for the year 2024. The company, which operates Truth Social, a social media platform created after Trump was banned from Facebook and Twitter, is still in the process of developing its suite of products and services, including ventures into streaming and fintech. Despite the financial loss, Trump maintains a 53% stake in the company, held in a revocable trust, and has indicated he does not intend to sell his shares.

The financial difficulties of Trump Media are set against a backdrop of a turbulent year in the stock market, where the company's shares experienced a wide range of volatility, peaking at $66.22 and dropping to a low of $12.15. This volatility is often linked more to political developments involving Trump rather than the company's financial health. The presence of prominent figures such as Linda McMahon and Kash Patel on the board highlights the political connections within the company. The story underscores the challenges faced by media companies in maintaining financial stability while expanding their offerings in a competitive tech and media landscape.

Donald Trump Fintech Streaming Trump Media & Technology Group Kash Patel Truth Social Financial Loss Stock Volatility Linda Mc Mahon

Story submitted by Fairstory

RATING

6.8

Fair Story

Consider it well-founded

The article provides a clear and timely overview of Trump Media & Technology Group's financial performance in 2024, supported by credible sources such as SEC filings. It is well-structured and accessible, making it easy for readers to understand the key points. However, it could benefit from greater transparency regarding its sources and methodology, as well as a more balanced perspective that includes expert opinions or broader context. While the story is of interest to those following Trump's business ventures, its specialized focus may limit its engagement with a wider audience. Overall, the article is informative but could enhance its impact and engagement by addressing these areas.

Accuracy

The story is largely accurate, presenting verifiable facts about Trump Media & Technology Group's financial performance in 2024. The claims regarding the net loss of $401 million and revenue of $3.6 million are corroborated by the company's annual report filed with the SEC. However, the article could benefit from additional verification of Trump's personal stake in the company and the specifics of stock-based compensation and derivative liabilities. The mention of Trump not intending to sell his shares is another point that would require direct confirmation from Trump himself.

Balance

The article provides a focused perspective on Trump Media & Technology Group's financial situation, primarily highlighting the company's losses and stock performance. While it includes some context about the company's expansion efforts, it lacks a broader range of viewpoints, such as expert opinions on the company's market strategies or potential future performance. The narrative could be perceived as somewhat one-sided, emphasizing financial difficulties without equally exploring potential opportunities or positive developments.

Clarity

The article is generally clear and concise, with a logical structure that guides the reader through the company's financial performance and related developments. The language is straightforward, making the complex financial information accessible to a general audience. However, some terms like 'derivative liabilities' might require further explanation for complete clarity.

Source quality

The article relies on credible sources such as the SEC filings for financial data, which enhances its reliability. However, it does not cite a wide variety of sources, and there are no direct quotes or statements from company officials or independent analysts. The reliance on Forbes for valuation figures is reasonable, but additional sources could provide a more comprehensive view of the company's situation.

Transparency

The article lacks detailed transparency regarding its sources and methodology. While it mentions the SEC filing, it does not provide direct links or excerpts from the document. Additionally, the basis for Forbes' valuation of Trump's net worth is not explained, leaving readers without insight into how these figures were calculated. Greater transparency in these areas would enhance the article's credibility.