Shares of Trump Media & Technology Group (DJT) have continued on a downward trajectory since its namesake’s inauguration in January. Most recently, the stock has shed 5% over the past week, catalyzed by the revelation of a substantial net loss for the full year of 2024, tallying up to $400.9 million. The significant loss was due to legal expenses brought about by complications with the Securities and Exchange Commission during the Biden administration, alongside a revenue-sharing agreement that negatively impacted the company’s income.
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Tale of the Tape
The company’s annual reported revenue was $3.6 million, which marked a 12% year-over-year decrease. The widening net loss was an evident leap from $58.2 million in 2023 to $400.9 million.
Despite the lack of revenue and substantial losses, Trump Media nearly doubled its value in 2024, an achievement credited primarily to Donald Trump’s win in the U.S. presidential election.
The company holds $776.8 million in cash and short-term investments, as it continues exploring opportunities for partnerships and acquisitions. More than half of Trump Media’s available cash came from selling $450 million worth of shares to New Jersey-based financial firm Yorkville Advisors.
Defying Typical Analysis
Despite financial losses, Trump Media shares continue mimicking the behavior of “meme stocks,” operating independently from the company’s financial results.
Unlike other social media conglomerates such as Meta (META), Trump Media steers clear from traditional user engagement metrics, arguing that those numbers can distract from strategic evaluations crucial to the company’s progress. Further, the company has not held an earnings call in several quarters.
Further muddying the waters, the company plans to expand beyond social media by launching its own customized ETFs and separately managed accounts (SMAs) as a part of its nascent financial services brand, Truth.Fi.
However, as the company’s recent public participation in suing a Brazilian justice has demonstrated, it will not shy away from controversy as it continues to carve an unusual path forward. Investors should be prepared for further headline-induced volatility.
