NEW YORK (AP) — The president’s media company posted a massive loss in the second quarter and announced plans to ditch new business lines and refocus as a forum for users to post their views.
Trump Media & Technology, the company behind the Truth Social platform, said Monday that it lost $238 million in the three months through June as it branched into businesses unrelated to media, including crypto. That was more than 10 times the loss from a year earlier. The per-share loss widened to 86 cents from 8 cents.
In a conference call after the earnings release, the new chief executive, Kevin McGurn, said a yearlong effort to expand by branching into several new industries including online betting and crypto would now be largely abandoned as he refocuses the business on its social media mission.
“We made the disciplined choice to pivot in order to invest more time and resources in our most important initiatives,” McGurn said. “We will say no to things or change course as warranted.”
Trump Media stock fell slightly in after-hours trading following the earnings report. The stock had fallen 8% in regular trading.
Key to McGurn’s plan is a service called Truth API that offers early access to Wall Street trading firms to top posters on the Truth Social platform. That includes the user with most followers, President Donald Trump, who often moves markets by breaking major U.S policy shifts on the site.
Source : https://apnews.com/article/truth-social-media-trump-djt-crypto-e86747f01cc12dbee0146c5f0e79012b
