Trump's Truth Social parent loses millions in first quarter; stock flops

Trump Media & Technology Group, which runs former President Donald Trump's Truth Social, on Monday reported a first-quarter operating loss of $12.1 million, way more than the $3.6 million of last year. The stock cratered 10% early Tuesday.

Shares of the Sarasota, Florida-based firm began trading on the Nasdaq under the ticker symbol DJT in March following its merger with Digital World Acquisition Corp. At Monday’s closing price of $48.38 per share, TMTG’s market capitalization was $6.6 billion. 

“At this early stage in the company’s development, TMTG remains focused on long-term product development rather than quarterly revenue,” the company said in announcing the Q1 results. “By adding features to Truth Social, launching live TV streaming and building out its ecosystem, the company aims to first develop a slate of best-in-class products that can then be leveraged to increase revenue and drive long-term value.”

Mr. Trump holds about 65% of the outstanding shares in TMTG, valuing his stake at $5.5 billion. He's restricted from selling his shares for six months after the company’s stock started trading publicly. 

TMTG plans to launch a live TV streaming platform for the Truth Social app, available on Android, iOS and web platforms. Later phases Truth Social streaming apps.