Trump Media Stock Falls 8% Amid Heavy Losses and Limited Revenue
Trump Media's stock fell by 8% to $9.39 on Monday, marking another quarter of heavy losses for the company. The net loss for the second quarter was $238.1 million, a significant increase from last year's $20 million. Revenue rose 89% to $1.7 million, but operating losses widened to $164 million from $44 million.
The majority of the net loss came from unrealized declines in Bitcoin and Cronos-related securities. However, CEO Kevin McGurn expressed optimism about Truth API, a service that provides rapid access to posts from leading Truth Social accounts, including President Donald Trump's. Customers are paying between $60,000 to $100,000 per month for this service, with 10 high-frequency trading firms signed up so far.
This could potentially generate $7 million to $12 million annually in revenue, which is several times the company's expected 2025 revenue of $1.7 million. Trump Media also sees potential customers among news organizations, data companies, and developers of large language models.
The company has proposed an all-stock merger with TAE Technologies, valued at over $6 billion, which would alter its business model and give investors exposure to experimental fusion-energy technology. Trump Media hopes to close the transaction by year-end.