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In this photo illustration, Republican presidential candidate former President Donald Trump’s social media platform Truth Social is shown on a cell phone on March 25, 2024 in Chicago, Illinois.

New York

Truth Social owner Trump Media & Technology Group announced Monday that it lost more than $58 million in 2023 and generated very little revenue.

The numbers underscore why some experts warn that Trump Media’s billion-dollar valuation defies logic and is reminiscent of the meme stock craze.

In a regulatory filing on Monday, Trump Media said it lost $58.2 million in 2023, compared with a profit of $50.5 million in 2022.

Truth Social’s owner generated just $4.1 million in revenue, although that was up from $1.5 million in 2022.

The losses are so severe that Trump Media’s accountants warn they raise “substantial doubt about the ability to continue as a going concern,” which Wall Street faces: We may not be able to survive. That warning echoes one made in November when auditors said Trump Media might not survive unless it completes its merger soon and goes public.

That long-delayed deal was completed last week, clearing the way for Trump Media to receive an influx of about $300 million in cash.

Shares of Trump Media fell more than 22% on Monday after the new filings.

While Trump Media is losing money and generating little revenue, Wall Street has valued the company at as much as $11 billion based on the closing share price on Friday, according to Renaissance Capital.

While Trump Media earned just $4.1 million in revenue in 2023, rival $665 million. $5 billion in revenue in the last year before it was taken private by Elon Musk.

The problem for Trump Media is that its main product – Truth Social – is shrinking.

The number of monthly active U.S. users on iOS and Android fell to 494,000 in February, a 51% year-over-year decline, according to Similarweb. By comparison, X has 75 million monthly active US users. Even Threads has more than ten times as many users as Truth Social, according to SimilarWeb.

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