The parent company of Donald Trump's social media platform Truth Social reported more than $16 million in losses and less than $1 million in revenue in the second financial quarter.
In announcing its quarterly SEC filing Friday, Trump Media & Technology Group said its net losses largely consisted of $8.3 million in legal expenses for its March merger and $3.1 million from technology expenses related to the company's new streaming service.
The filing also shows the company only brought in $837,000 in revenue and $2.3 million in interest income in the second quarter of 2024.
"With the introduction of TV streaming in August 2024, the Company believes that it has laid the foundation for a core driver of long-term revenue and value," a Trump Media press release on the filing states. "With its strong balance sheet and zero debt load, the Company believes it has sufficient working capital to fund operations for the foreseeable future."
Trump Media, trading under theticker DJT, has seen falling stock prices with since mid-July. Prices were down more than 7% Monday afternoon.
More: Trump falsely claims Harris used AI to generate visuals depicting large crowds
Trump Media (DJT) stock prices
Trump Media compared to a meme stock for volatility, overvaluation
Trump Media has long been compared to a meme stock, as experts say prices rise and fall largely due to retail investors' coordination and attention.
The company was founded in 2021 after Trump was booted from other social media companies following the Jan. 6 riot on the U.S. Capitol. The company went public in March through a merger with shell company Digital World Acquisition Corp., a special purpose acquisition company, or SPAC. Despite a splashy debut, the stock prices have whiplashed wildly, often in coordination with the rollercoaster of a news cycle for Trump this year.
Experts have also said the stock is overvalued by conventional Wall Street standards compared with other social media companies.
In May, Trump Mediareported a net loss of $327.6 million in the first quarter of 2024 and brought in $770,500 in revenue, according to a filing. Regulatory filings show the company was operating at a loss in 2023, making about $4 million in revenue while losing more than $58 million.
"From the beginning, it was our intention to make Truth Social an impenetrable beachhead of free speech, and by taking extraordinary steps to minimize our reliance on Big Tech, that is exactly what we are doing," Trump Media CEO Devin Nunes in the Friday press release.
This article originally appeared on USA TODAY: Trump Media technology stock price falls 7% after $16M in Q2 losses