Trump Media and Technology Group’s (DJT) Truth Social Platform Earned Just Over $4 Million in Revenue Last Year

This is not a recommendation for investment. The author does not hold any positions in the mentioned stocks.

In November 2023, Trump Media and Technology Group (NASDAQ: DJT) strongly criticized multiple media outlets for initiating a “significant slander campaign,”which included the dissemination of “completely fabricated financial results.”However, only a few months later, Trump’s media-centric entity has acknowledged the accuracy of those previous reports through a recent submission to the SEC.

In March, Trump Media and Technology Group successfully completed its long-awaited reverse merger with Digital World, a SPAC. The resulting company’s shares were publicly traded on the Nasdaq exchange last week, in case there were those who were not aware.

As mentioned in a recent post, the stock has continued to surge since then, surpassing even NVIDIA’s impressive growth this year. This has resulted in a significant increase in Donald Trump’s net worth, thanks to his massive ownership of 78.75 million shares in the company.

DJT Reports $4.131 Million in Revenue for 2023

This brings us to the central point of discussion. According to reports from various media sources in November 2023, Truth Social – the social media platform resembling X and owned by Trump – has incurred a loss of $73 million since its launch, with total earnings of only $3.7 million.

In a recent submission to the SEC, Trump Media and Technology Group has indirectly confirmed the previous reports by revealing that their Truth Social platform only generated $4.131 million in revenue for the entire year of 2023. Additionally, the platform suffered a substantial net loss of over $58 million during the same period.

Trump Media trades at a valuation of 2,500x sales

Its social media comps trade at 4x to 12x sales

If it were to trade in line with its peer group, $DJT share price would decline -99.7% from current levels pic.twitter.com/DKJWEaQZVs

— Julian Klymochko (@JulianKlymochko) March 31, 2024

This revenue figure is equivalent to a Trailing Twelve Months (TTM) Price-to-Sales (P/S) multiple of 2,030x, calculated using the current market capitalization of $8.39 billion. If Trump Media and Technology Group’s shares were to be valued in line with its industry competitors, the stock would experience a decrease in value of approximately 99 percent.

Despite our previous observation from last week, it would not be wise to purchase put options for the soaring stock at this point. This is due to the increased implied volatility, which has caused the options to become exceedingly expensive.