Turns out that Truth Social, the social media platform by Donald Trump,
has lost a lot of money.
And that's according to financial filings from 2023.
Let's get into the details.
So former President Trump's social media company lost a whopping $58 million
on just 4.1 million in revenue during 2023, according to new SEC filings.
Much of the net loss appears to come from.
I can't even believe this. $39.4 million in interest expenses.
So paying interest on loans that Truth Social has taken out.
And it's not only that, revenue tumbled 39% year over year
in the fourth quarter to just $751,500.
And as CNN reports, the losses are so severe that Trump media's accountants
warned they raise substantial doubt about its ability to continue as a as
a going concern, which is Wall Street, for we may not be able to stay in business.
And, it's really bad.
If you're wondering, is it really that bad?
It's bad. Okay.
So let's put these numbers in greater context, comparing true social
to other social media platforms.
While Trump Media made just $4.1 million
in revenue last year, rival X raked
in more than 100 times that much. 600.
$665 million in 2013, ahead of its initial
public offering in November of 2013.
So Twitter also generated just over $5 billion in revenue in the final year
before it was taken private by Elon Musk.
So with that context in mind, Jake, I need you to explain to me again how Trump
is supposed to make billions of dollars off of Truth Social once it goes public.
Pausing here to deliver some honest truth, as we do in our news coverage as well.
TYT is facing challenges, guys, as the entire industry is.
You know who could make the difference? You.
If you hit the join button below, it's going to make all the difference
and keep us in business.
We appreciate you. Thank you.
Yeah. So it has gone public.
Oh it has yeah.
And today the price took a dive after these numbers, which shows you what's
exactly what's wrong with the stock market because these numbers were super obvious.
In fact, I talked about them last week. Yeah.
The fourth quarter numbers came in, but they're very similar to the other
three quarters from the year.
And everything else.
The truth social has done is never made any money.
It's always lost money and gobs and gobs of money.
Number one, it's run by Donald Trump, so it has no chance of ever making money.
Literally every company that Donald Trump has ever run has gone bankrupt.
So but now here's the question that Ann is asking.
So how in the world could it be worth 6 or $7 billion after it went on the public
markets, when it makes no money?
Now that is theoretically possible.
And the reason that a lot of people speculate in directions like that
is because it has happened to companies like Amazon, where they lost a
tremendous amount of money for many years as they were getting market share.
And and then they later turned that huge market share into massive profits.
So it does happen from time to time.
You could that you could invest into a company that's losing
money today as an investment.
In fact, Fox News lost $450 million before it ever turned a profit.
And so, so that is possible.
And that's why you get these kind of valuations, even though the revenue
and the profits don't justify it today.
Now, having said that, there has to be a real belief that that
company can get to those level of profits.
Is there any chance that True Social and Trump's company
are going to reach those profits?
I'm telling you now, none. Zero.
This is a giant Ponzi scheme.
And and it's built on the idea that Trump fans will buy the stock at any price,
and it is not attached to reality.
The valuation is based on assuming a derangement syndrome, on the part
of Trump fans that they're in a cult and cannot judge things rationally.
And so far they are largely right.
I think this stock is worth $0. And so but right now it's
worth about 5 to 6 billion.
By the way, if it's true. Congratulations Anna.
Tweet is worth well over $30 billion right okay.
What a joke. What a joke this valuation is.
Please don't get robbed. Do not put money in this.
You will lose very likely all of your money okay?
And that's me trying to help MAGA guys don't give financial advice.
You never know, okay? Nothing makes sense.
There's never know.
And things go up and they go down and you might make money for a couple of days.
- You can't explain it, okay? - I'm just telling you word to the wise.
Never take my investment advice. There's 100 different factors, right?
Okay, but having said that, Republicans don't say that.
I didn't try to help you. Thanks for watching.
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