The company made just over $4 million in revenue but racked up $58 million in costs last year.
Trump's social media company, Truth Social, is facing financial difficulties.
Former President Donald Trump's social media company, Truth Social, is facing financial difficulties. According to a recent SEC filing from the company, it made just over $4 million in revenue but racked up $58 million in costs last year. The auditor for the company stated that these losses raise substantial doubt about its ability to continue as a going concern.
Trump has a 57% stake in the company but is not allowed to sell any of his shares until the expiration of the six-month lock-up period.
The stock's decline meant that Trump's net worth on paper is now down by more than $1 billion.
Accuracy
Former President Trump's net worth fell by more than $1 billion on Monday.
The value of Trump's stake in the company fell on Monday from $4.89 billion to $3.84 billion.
Deception
(50%)
The article is deceptive because it uses emotional manipulation and selective reporting to portray Trump's net worth in a negative light. The author does not provide any context or comparison for the change in Trump's net worth, nor does he mention that his stake in Trump Media is illiquid and subject to lock-up periods. The author also implies that Truth Social has no appeal beyond Trump supporters, which is a biased and false statement. Additionally, the article omits any information about the sources of its claims or quotes from experts who could provide alternative perspectives on Trump's net worth and his social media company.
Trump isn't allowed to sell any of his Trump Media shares until a six-month lock-up period expires. Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. This is an example of deception by omission, as the article does not inform readers that they are being targeted with advertising messages and that their data may be used for marketing purposes without their consent.
The former president's net worth fell by over $1 billion after shares for Trump Media plunged. This is a lie by omission, as the article does not mention that Trump cannot sell any of his shares until June 26, 2024, which is more than six months away from the date of publication.
The stock's decline also meant that Trump's net worth on paper is now down by more than a billion dollars. This is deception by omission, as the article does not provide any context or comparison for this claim or explain how it was calculated.
The social media platform has far fewer monthly active users than Facebook and X, formerly Twitter, and its appeal is largely confined to Trump supporters. This is deception by omission, as the article does not cite any evidence or sources to support this claim or compare it with other similar platforms in terms of user engagement, retention, and revenue.
The developments on Monday are likely to be a bummer for Trump, who before the rout was poised to net a huge windfall from his stake in the company. The money would certainly come in handy for Trump, whose legal debts have been piling up.
Representatives for Trump did not immediately respond to a request for comment from Business Insider sent outside regular business hours. This is deception by omission, as the article does not acknowledge any attempts made by the author or the publication to contact Trump or his representatives for clarification or confirmation of their claims and sources.
Shares for Trump Media fell by as much as 26% after it reported a net loss of $58 million last year and a revenue of just $4.1 million, per an SEC filing. This is deception by omission, as the article does not provide any details or analysis of the reasons behind Trump Media's financial performance or its prospects for growth.
On Monday, Trump posted a $175 million appeal bond in his New York civil fraud case. An appeals court slashed the size of Trump's bond last week, bringing it down from the $454 million that he was originally asked to pay. Besides the civil fraud case, Trump also owes$83.3 million in defamation damages to E. Jean Carroll, a writer whom a jury ruled in 2023 that he'd sexually abused. This is deception by omission, as the article does not mention any of Trump's other legal troubles or financial liabilities that could affect his net worth and his ability to pay off his debts.
Fallacies
(70%)
None Found At Time Of
Publication
Bias
(85%)
The article contains examples of monetary bias and religious bias. The author uses the phrase 'Trump's net worth took a huge hit', which implies that Trump is responsible for his own financial situation, when in fact it was due to external factors such as the performance of his company. Additionally, the author mentions that Trump has legal debts piling up and owes money to E Jean Carroll, implying that he is irresponsible with his finances.
The stock's decline also meant that Trump’s net worth on paper is now down by more than a billion dollars.
Trump's net worth took a huge hit
Site
Conflicts
Of
Interest (50%)
None Found At Time Of
Publication
Author
Conflicts
Of
Interest (50%)
The author has a financial conflict of interest on the topics of Donald Trump and his net worth. The article reports that Trump's stake in Truth Social is 57% but he is not allowed to sell any shares until a six-month lock-up period expires. Additionally, the article mentions that Trump's net worth has decreased by more than $1 billion after Truth Social shares tumbled.
The article reports that Trump’s stake in Truth Social is 57% but he is not allowed to sell any shares until a six-month lock-up period expires.
Trump Media stock decline means that Trump’s net worth on paper is now down by more than $1 billion
Former President Trump's net worth fell by more than $1 billion on Monday.
, shares of his social media company plunged 21.5%.
, The big picture: This was a MAGA meme stock meeting financial reality.
Accuracy
Trump Media & Technology Group disclosed a $58 million net loss for 2023 on just $4.1 million in revenue, all of which came from ads on Truth Social.
The value of Trump's stake in the company fell on Monday from $4.89 billion to $3.84 billion.
Deception
(80%)
The article is deceptive in several ways. Firstly, the title implies that Trump's net worth has fallen by $1 billion due to his social media company's poor performance when in fact it was only a loss of value on Monday. Secondly, the author uses sensationalist language such as 'financial reality', 'MAGA meme stock meeting financial reality', and 'Trump lost a ton of paper value'. These phrases are used to manipulate readers into believing that Trump's net worth has fallen significantly when in fact it is only a temporary decline. Thirdly, the article uses selective reporting by focusing on the negative aspects of Truth Social's performance while ignoring any positive developments or achievements. Lastly, there is no disclosure of sources used in the article.
Former President Trump's net worth fell by more than $1 billion on Monday
The big picture: This was a MAGA meme stock meeting financial reality.
Fallacies
(85%)
None Found At Time Of
Publication
Bias
(85%)
The article contains multiple examples of monetary bias. The author uses language that deprecates the financial performance of Trump Media & Technology Group and portrays it as a failure. The author also mentions the decline in value of Trump's stake in the company which is presented as a negative outcome, despite not providing any context for how this loss compares to other investments or his overall net worth.
By the numbers: The value of Trump's stake in the company fell on Monday from $4.89 billion to $3.84 billion.
The big picture: This was a MAGA meme stock meeting financial reality.
Trump Media & Technology Group disclosed a $58 million net loss for 2023 on just $4.1 million in revenue, all of which came from ads on Truth Social.
Site
Conflicts
Of
Interest (50%)
Dan Primack has a financial interest in Trump Media & Technology Group as he is the founder of Axios and owns shares in the company. He also reports on net worth and stock prices which could be influenced by his ownership stake.
$751,500 in fourth-quarter revenue
Trump is prevented from selling any shares for at least six months due to a lockup agreement
Trump Media & Technology Group disclosed a $58 million net loss for 2023 on just $4.1 million in revenue
value of Trump's stake in the company fell from $4.89 billion to $3.84 billion
Author
Conflicts
Of
Interest (50%)
Dan Primack has a financial conflict of interest on the topic of Trump's net worth and Truth Social. He reports that shares in his social media company plunged 21.5% and that Trump's net worth fell by more than $1 billion as a result.
$751,500 in fourth-quarter revenue
Trump is prevented from selling any shares for at least six months due to a lockup agreement
Trump Media & Technology Group disclosed a $58 million net loss for 2023 on just $4.1 million in revenue
value of Trump's stake in the company fell from $4.89 billion to $3.84 billion
Trump Media & Technology Group (TMTG) is not relying on traditional performance metrics and doesn't plan to anytime soon.
The company believes focusing on these KPIs might not align with the best interests of TMTG or its shareholders, as it could lead to short-term decision-making at the expense of long-term innovation and value creation.
Truth Social has seen an aggregate of about 9 million sign-ups via iOS, Android and the web as of mid-February.
Shares of Trump Media & Technology Group sank 21.5% to close at $48.66 after an SEC filing showed the company lost $58.2 million last year on revenue of $4.13 million.
The valuation changes by the billion from day to day, and Ritter suggested that it might fall 95% from its first-day trading price of $57.99.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(80%)
The article is deceptive in several ways. Firstly, the author claims that Trump's social media platform does not rely on traditional performance metrics such as monthly active users to gauge engagement. However, this statement contradicts the fact that similar companies like Facebook parent Meta typically report these numbers and are used by investors to evaluate their success. Secondly, the auditor of Truth Social filed a going concern notice which implies that there is substantial doubt about its ability to continue operating in such a manner as it has been doing. This suggests that the company may not be profitable or sustainable in the long run.
The author claims that Trump's social media platform does not rely on traditional performance metrics, but this contradicts industry standards and is likely misleading investors.
Fallacies
(85%)
The article contains several examples of informal fallacies. The author uses an appeal to authority by stating that Trump Media & Technology Group (TMTG) believes it should not focus on traditional key performance indicators (KPIs). This statement is presented as a fact without any evidence or reasoning provided to support the claim. Additionally, the article contains examples of inflammatory rhetoric and appeals to emotion when discussing TMTG's goals for Truth Social platform, such as competing with X and promoting free expression.
The author uses an appeal to authority by stating that Trump Media & Technology Group (TMTG) believes it should not focus on traditional key performance indicators (KPIs). This statement is presented as a fact without any evidence or reasoning provided to support the claim.
The article contains examples of inflammatory rhetoric and appeals to emotion when discussing TMTG's goals for Truth Social platform, such as competing with X and promoting free expression.
Bias
(85%)
The author of the article is not providing any examples that demonstrate bias. However, there are a few statements in the article that suggest potential biases.
< The auditor filed what is colloquially termed a 'going concern' notice boilerplate language for companies with low revenues and high losses that there is a substantial doubt whether it can continue operating.
The company believes focusing on these KPIs might not align with the best interests of TMTG or its shareholders, as it could lead to short-term decision-making at the expense of long-term innovation and value creation.
> The company pointed out that since its inception, management hasn't used such data (monthly active users).
Truth Social made just over $4.1 million in revenue but racked up $58.2 million in costs in its latest operating year.
The company revealed an operating loss of $15.96 million and around $40 million in interest.
An auditor for the company, BF Borgers of Colorado, said the losses raise substantial doubt about its ability to continue as a going concern.
Accuracy
No Contradictions at Time
Of
Publication
Deception
(90%)
The article is deceptive in several ways. Firstly, the title and body of the article both claim that Truth Social is bleeding money like crazy when it has actually made a profit for two years running. Secondly, Josh Marshall's statement on X (former Twitter) Talking Points Memo founder claims that Trump Social was bleeding money like crazy which is not true as per SEC filing. Thirdly, the article states that BF Borgers of Colorado auditor said losses raise substantial doubt about its ability to continue as a going concern but it's unclear if this statement is accurate or not.
The article states that BF Borgers of Colorado auditor said losses raise substantial doubt about its ability to continue as a going concern but it's unclear if this statement is accurate or not.
Josh Marshall's statement on X (former Twitter) Talking Points Memo founder claims that Trump Social was bleeding money like crazy which is not true as per SEC filing.
The title and body of the article both claim that Truth Social is bleeding money like crazy when it has actually made a profit for two years running.
Fallacies
(85%)
The article contains several fallacies. The author uses an appeal to authority by citing the opinions of a journalist and auditor without providing any evidence or context for their expertise. Additionally, the author makes a false dilemma by stating that Truth Social is either successful or not successful based solely on its financial performance, ignoring other factors such as user engagement and content quality. The article also contains inflammatory rhetoric by using phrases like 'bleeding money' and 'zero actual value', which are designed to elicit an emotional response rather than a rational one.
The author cites the opinions of Josh Marshall, Talking Points Memo founder, without providing any evidence or context for his expertise. This is an appeal to authority fallacy.
Bias
(85%)
The article contains multiple examples of monetary bias. The author uses language that depicts the company as being in a dire financial situation and struggling to attract users. They also use quotes from experts who suggest that the company's success rests on its ability to attract more users and provide an attractive blend of content, functionality, and services.
The article mentions that Truth Social reported revenues of over $3 million last year with close to $50 million in losses. This shows the company is struggling financially and highlights their lack of profitability.
The author uses language such as 'bleeding money like crazy' which is a clear example of monetary bias.
Todd Landman, professor of political science at the University of Nottingham says that 'the potential success of Truth Social (and the DJT stock) thus rests on attracting a much larger volume of users' which further emphasizes monetary bias.
Site
Conflicts
Of
Interest (50%)
Kate Plummer has a financial interest in the success of Truth Social as she is an employee of Trump Media & Technology Group Corporation (TMTG). She also reports on Donald Trump's net worth and his involvement with TMTG. Additionally, Kate Plummer quotes Josh Marshall, who is known for being critical of Facebook and Mark Zuckerberg.
@joshtpm's latest Securities and Exchange Commission (SEC) disclosure from Trump Media & Technology Group Corporation (TMTG)
Kate Plummer is an employee of Trump Media & Technology Group Corporation (TMTG) which owns Truth Social
Kate Plummer reports on Donald Trump's net worth and his involvement with TMTG
Author
Conflicts
Of
Interest (50%)
Kate Plummer has a conflict of interest on the topics of Truth Social and finances as she is reporting on Donald Trump's company. She also reports on Zuckerberg riding a tiger which could be seen as an endorsement for him.
$1 billion net worth shrinkage after the SEC filing on Monday, causing the former president’s net worth to shrink by $1 billion.
@joshtpm's latest Securities and Exchange Commission (SEC) disclosure from Trump Media & Technology Group Corporation (TMTG)
