Trump Media reports $19.2 million loss in Q3, revenue declines on election day filing

Trump Media, the parent company of Truth Social, posted a surprise third-quarter loss of $19.2 million, along with a slight decline in revenue, according to an unexpected filing made on Election Day as detailed in a report by CNBC.

The company’s revenue for the period dropped 5.6 per cent to just $1.01 million compared to the same quarter last year. The filing, which came after the stock market closed on Tuesday, caught investors off guard, particularly as it coincided with Election Day when former President Donald Trump faced off against Vice President Kamala Harris the CNBC report detailed further.

Trump's media stock will remain volatile

Despite the disappointing financial results, Trump Media's stock showed a volatile response. Shares initially surged by more than 6 per cent in after-hours trading, but earlier in the day, the stock had given up an 18.6 per cent intraday rally to finish 1.2 per cent lower. With the election outcome still pending, stock movements are likely to remain unpredictable in the coming days. 

Trading activity in Trump Media has been erratic. Over the past week, its stock has fallen by more than 34 per cent, although it remains up 93 per cent year-to-date. The company’s trading volume has been notably higher than average, more than doubling its usual 30-day volume. 

For the first nine months of 2024, Trump Media reported a total of $2.6 million in revenue, alongside a substantial net loss of $363 million.

However, the company’s balance sheet shows $673 million in cash and investments, with no debt, a point that CEO Devin Nunes highlighted in his statement. He described the quarter as "extraordinary" and reaffirmed the company’s commitment to exploring "additional possibilities for growth."

This mixed financial performance reflects Trump Media's challenges in building a sustainable business, particularly as its flagship platform, Truth Social, competes in a crowded social media market.

Despite the losses, the company remains optimistic about its future growth prospects, even as it navigates a turbulent political and financial landscape.

All eyes are now on the outcome of the US presidential election with a possibility of Trump winning his second term as he competes against Kamala Harris for the top position. Market participants and investors will closely follow these developments to make informed investment decisions on Trump Media’s stock.