Filings Prove Trump's Truth Social Is Completely Worthless

According to recent financial filings, Donald Trump's Truth Social - which was just merged with Digital World Acquisition when they acquired the Trump Media and Technology Group - lost WAY more money last year than previously thought. Previous estimates assumed the company lost about $30 million, but the real amount was actually a loss of more than $50 million last year. So how can a completely worthless company that is hemorrhaging money be worth $8 billion in the stock market? Ring of Fire's Farron Cousins analyzes this question.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

Last week following the merger of Trump Media and Technology Group with Digital World Acquisition, the stock for the newly formed company, uh, approached a value of almost $8 billion, which is, of course funny because the only property that Trump media and technology actually has is truth social. And according to the newest FEC filings, truth social is actually financially far worse off than anyone even knew. See, here's the thing. During all of this media who hoopla about the merger actually finally happening, uh, they reported that Truth Social brought in about three to $4 million last year, but spent $31 million. Now, those were based on estimates, of course, because we didn't have the fourth quarter financials yet. Well, now we do. And it turns out that that estimated $31 million loss for truth social was about $27 million too low. The newest analysis has found that Truth Social did in fact bring in almost $4 million last year, but spent 58 million, meaning truth social, the only active part of Trump Media and Technology group that was valued at $8 billion a week ago is a company that lost $54 million last year.

So how in the hell is this thing worth anything? I mean, $1, let alone 8 billion. This is absolutely absurd. Folks, if you don't think that there is some kind of shady crap going on with, with all of this thing, you are absolutely delusional at this point. Truth social is hemorrhaging money. It is hemorrhaging users, and yet we are supposed to believe that just because the stock is doing well, or it did actually once this story broke on Monday, uh, stock dropped by $5 a share. But anyway, it's still worth allegedly billions. Here's what Business Insider, Emily Stewart, uh, uh, reporter. Here's what she said about the thing. The stock is probably trading at something like 2000 times the company's annual revenue that is, um, high Apple, for example, trades at about seven times. Its total revenue. This is not a thriving business. Truth Social had an estimated 5 million monthly website visits in February of this year, according to third party trackers, but the company isn't revealing exact metrics right now. By comparison, Facebook had 845 million monthly active users when it went public in 2012, and Twitter had 215 million when it iPod the following year.

In other words, truth Social is somehow valued far more than the actual real social media companies like Facebook and Twitter when they initially, uh, offered their public offerings. And yet, truth Social has a tiny fraction of the users that these other sites have. In fact, according to another analysis, uh, truth Social only has about 845,000 active monthly users. The 5 million number that Emily Stewart pointed out was total website visits. Okay? Not active users, but that includes people in the media, myself included, who go to Truth Social to look at Donald Trump's things. We don't have accounts, we're not active users. We're just reporting on what Trump said. So again, I want answers. I I, I want an investigation at this point because this is insane.