On election day, Donald Trump faced a significant financial setback with a reported loss of nearly $20 million. Although the report was quarterly, the news caused shockwaves in the market due to the importance of November 5th in the U.S. elections.
What Happened to Donald Trump?
Trump Media, the company owned by former President Donald Trump that encompasses his Truth Social platform, reported a quarterly loss of $19.2 million on Tuesday, right in the middle of election day in the United States.
The publicly traded company, which experienced major stock market volatility, released its third-quarter results without having reported figures for the second quarter. Its CEO, Devin Nunes, described the period as “extraordinary,” largely due to its streaming service.
In the third quarter, Trump Media lost $19.2 million, which is a 26% reduction in losses compared to the same period in 2023. Its net revenue remained steady at around $1 million, but its costs increased sixfold year-over-year.
Despite the losses, the company celebrated its financial position, ending the quarter with $673 million in cash and investments, and no debt. The company also revealed that it is “exploring new avenues of growth, including mergers and acquisitions.”
Trump Media’s stock price initially surged by 13% at the market’s opening but closed with a 1% decline, with fluctuations triggering the market’s volatility control mechanisms and halting trading twice.
The former president, who holds about 65% of the company’s shares, sees his personal wealth closely tied to the company’s market performance.
At the close of Wall Street, the company’s market value stood at $6.87 billion. According to the financial breakdown, Trump Media has accumulated losses of €363 million in the first nine months of the year, which is seven times greater than the losses reported in the first half of 2023.
This article was originally written in Spanish by Miguel Fernández in Cultura Colectiva News
