Shares of Trump’s media company are falling after doubts arise about its continuity

(Reuters) – Shares of Trump Media & Technology Group fell more than 13% on Monday as the parent company of the Truth Social platform raised doubts about its continuity and struggled to meet its financial obligations, just days after went public via a blank check merger.

The company posted a net loss of $58.2 million in the year ending December 2023, compared with a net profit of $50.5 million a year earlier. Revenue was $4.13 million last year, compared with $1.47 million in 2022, it said in a filing.

“As of December 31, 2023 and 2022, management had significant doubts as to whether TMTG will have sufficient resources to meet its obligations as they become due, including obligations associated with promissory notes previously issued by TMTG,” the company said.

Trump Media said it expects operating losses and negative cash flows from operations in the near future as it works to expand its user base and attract more platform partners and advertisers.

Shares rose more than 16% on the first day of trading on March 26, fueled by retail investors including supporters of former President Donald Trump.

But the stock has seen choppy trading since then, falling for the second straight session on Monday.

(Reporting by Yuvraj Malik in Bengaluru; Editing by Anil D’Silva and Arun Koyyur)

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