Although Trump’s media company has posted heavy losses following his election victory on Tuesday, the company’s shares have soared.
As Donald Trump prepares to return to the White House, his media company Trump Media & Technology Group (TMTG) has posted heavy losses following his election victory. Despite this, the company’s shares have soared, increasing the wealth of the elected president.
The parent company of Trump’s social network, Truth Social, lost 19.2 million dollars (17.83 million euros) in the last quarter, according to an earnings report released the day he was re-elected as the next president of the United States. Trump created the company after being banned from Twitter and Facebook after the assault on the Capitol on January 6, 2021.
Despite the poor results of his media company, its share price has risen. In fact, it became so volatile on wednesday that Nasdaq had to stop trading in TMTG shares.
At one point, the stock surpassed $45, but then cooled and fell below $36. at the end of the day. The closing price places TMTG’s market capitalization at $7.2 billion (€6.69 billion). Trump’s majority stake, 58.9% in the company, is worth about $4.1 billion (up from $3.9 billion at the close of trading Tuesday).
Donald Trump’s net worth rises
According to ‘Forbes’, Donald Trump’s net worth was $5.6 billion (€5.2 billion) just before the election, and his most valuable asset, his stake in the parent company of Truth Social, worth 3.5 billion dollars (3,250 million euros) on November 4.
However, the rally in TMTG shares has made increase the value of his 57% stake in the company. The 114.75 million shares it owns are now worth $4.1 billion (€3.8 billion).
Part of the gain was due to the increase in share price the previous day, but according to ‘Forbes’ calculations, the president-elect has seen the value of his stake in the company increase. at almost 300 million dollars (270 million euros) on the day he was elected to become the 47th president of the United States.
According to this calculation, Donald Trump is worth about $6.2 billion (€5.76 billion) the morning after Election Day. The sharp swings in Trump Media shares, along with the drop in your income and lossesmake the interest in the shares depend on the success or failure of Donald Trump.
However, as the Telegraph reported, the stock may also have been boosted by speculation that Elon Musk’s could buy the company eventually.
Losses due to legal fees at Trump’s media company
Trump Media and Technology Group reported on Tuesday that much of its $19.2 million (€17.85 million) loss was due to more than $12 million (€11.16 million) in legal feesalong with a decrease in income.
Revenue for the three-month period ending September 30 was just over one million dollars (930,000 euros), a drop of almost 6% compared to the previous year. Trump Media, based in Sarasota, Florida, has lost more than $363 million (€337 million) so far this year.
Trump Media said some of its costs were related to the launch of its new streaming service TV program called Truth+. CEO and former Republican U.S. Rep. Devin Nunes said in a statement that the company “continues to explore additional growth possibilities,” including mergers with other companies that would “benefit from Trump Media’s technology and brand.” The company said in a regulatory opinion that its success depends in part on “the reputation and popularity of President Donald J. Trump.”
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