(PartiallyPolitics.com) – On Thursday, former President Trump defended the performance of Truth Social, stating the platform is “very solid” despite its parent company, Trump Media & Technology Group, reporting a $58 million loss last year and experiencing a sharp 20% decline in its stock value that week.
Trump criticized the opposition, accusing them of spreading misinformation about Truth Social’s effectiveness and reach. He claimed that despite negative narratives, Truth Social remains impactful, particularly highlighting its role in his political communication.
The company, after merging with Digital World Acquisition Corp. (DWAC), a special purpose acquisition company, made its stock market entrance last week, marking the end of over two years of procedural delays. Initially, the stock performed well, but it faced a significant drop after announcing its financial losses for 2023.
Trump emphasized Truth Social’s financial status, claiming it has substantial cash reserves and no debt, although detailed financial data for the current quarter is pending. Trump Media’s financial disclosures revealed modest revenue against high operational and interest expenses.
Trump underscored the platform’s importance in disseminating his messages and the high level of public interest in his communications. Despite the financial challenges outlined in recent filings, where Trump Media anticipated continued operational losses and cash flow issues, Trump remained optimistic about Truth Social’s potential for growth and influence.
Financial analysts have labeled Trump Media as a “meme stock,” attributing its market valuation more to Trump’s personality and follower loyalty than to the company’s financial health. Trump, who holds a majority stake in the company, touted the success and rapid growth of Truth Social, asserting its effectiveness and his commitment to the platform.
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