Trump’s wealth drops by $1 billion due to collapse of social media company

(Bloomberg) — Donald Trump’s net worth dropped by $1 billion after it revealed a loss of more than $58 million in 2023 with shares of his social media business plunging as revenue from the former president’s truth social platform plunged. .

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Trump Media & Technology Group Corp.’s stock fell 21% on Monday to $48.66 a share, below the $49.95 level where the blank-check vehicle it merged with a week ago was trading. Trump owns 57% of the company, according to filings with the US Securities and Exchange Commission, with his stake now worth $3.76 billion on paper.

The recession has caused his net worth to decline 14% to $6.4 billion, according to data compiled by Bloomberg.

Trump Media earned just $4.1 million in revenue for the full year, a filing reported Monday morning shows, underscoring how valuable it is compared to its peers. The company doesn’t report active user numbers, revealing in its prospectus in February that Truth Social has about 9 million signups on its platform.

The company has enjoyed tremendous gains so far this year, with a market cap of about $6.6 billion after becoming a meme stock and wowing retail traders.

Reddit Inc. — which went public last month and has a similar valuation — had 267.5 million weekly active users last quarter, and delivered $804 million in revenue last year. Meanwhile Snap Inc., which has a market cap of $19 billion, had a net loss of $1.3 billion last year on sales of $4.6 billion. Snap estimates about 420 million daily active users in the first quarter.

Trump currently faces legal troubles, including four criminal lawsuits. First criminal trial – allegations that he falsified business records to conceal hush money payments to a porn company…

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