Trump Media & Technology Group Corp (NASDAQ:DJT), parent of the former president’s Truth Social, slumped on Tuesday after posting a multi-hundred-million dollar loss for the first quarter.
Net losses came in at US$327.6 million for the three months to March, Trump Media’s first report as a publicly traded company showed on Monday.
This was against a US$210,000 loss over the quarter a year earlier, with hundreds of millions in non-cash costs being incurred in relation to its merger with special acquisition company Digital World.
This ultimately saw the company list in New York, with Trump Media reporting US$233 million in proceeds from the merger.
Revenue fell almost a third to US$770,500, largely attributable to a change in agreement with one of Trump Media’s advertising partners, the company said.
“Additionally, revenue has varied as we selectively test a nascent advertising initiative on the company’s Truth Social platform,” Trump Media added.
“At this early stage in the company’s development, TMTG remains focused on long-term product development, rather than quarterly revenue.”
Shares fell 9.9% to US$43.59 on Tuesday.