[HN Gopher] Truth Social losses $300M on Q1
       ___________________________________________________________________
        
       Truth Social losses $300M on Q1
        
       Author : miohtama
       Score  : 38 points
       Date   : 2024-05-20 22:30 UTC (29 minutes ago)
        
 (HTM) web link (variety.com)
 (TXT) w3m dump (variety.com)
        
       | kazinator wrote:
       | Only an idiot would actually lose hundreds of millions on
       | something that should just be a PC server running in a closet
       | somewhere, on a residential broadband connection.
       | 
       | It's probably a lie, for tax purposes. The fake loss can offset
       | some real gain elsewhere.
        
         | rco8786 wrote:
         | > The fake loss can offset some real gain elsewhere.
         | 
         | Bingo
        
       | killingtime74 wrote:
       | At many companies, tech or law firms, $770,500 is the revenue
       | attributable to 1 employee or less
        
         | chrisco255 wrote:
         | I dunno there's countless tech startups that operate on low to
         | no revenue especially in the first few years of operation.
        
       | miohtama wrote:
       | > In Q1, the company recorded $311 million in non-cash expenses
       | arising from the conversion of promissory notes, and the
       | associated elimination of prior liabilities, immediately before
       | the closing of TMTG's merger with DWAC
       | 
       | SPAC promoters are harsh mistresses.
       | 
       | Hopefully Trump can get to the dumping of his shares soon, DJT
       | share price has recovered from its lows.
        
       | etchalon wrote:
       | The damning thing isn't the loss, it's the revenue. $770,500 in
       | revenue. $300M in losses.
       | 
       | And there are people buying this stock.
        
         | Cheer2171 wrote:
         | The stock is a legal way to buy favors from Trump.
        
           | ungreased0675 wrote:
           | Can you explain that further?
        
           | JumpCrisscross wrote:
           | > _stock is a legal way to buy favors from Trump_
           | 
           | It's closer to an NFT. He doesn't directly benefit from
           | holders; there are more direct ways to enrich him, _e.g._
           | loans.
        
         | chrisco255 wrote:
         | They are pre-revenue. A potential pure play.
        
       | JumpCrisscross wrote:
       | Most of that is loss non-cash option-valuation dark magic.
       | They're losing about $9.3mm a quarter on their operations [1].
       | Given their $230mm cash pile, that's over six years of runway.
       | 
       | The punch line is less than $1mm of quarterly revenue.
       | 
       | [1]
       | https://www.sec.gov/ix?doc=/Archives/edgar/data/0001849635/0...
        
         | ttul wrote:
         | ...Making their multiple about 1,650x ARR... Something tells me
         | that price ain't sustainable.
        
         | Animats wrote:
         | > In Q1, the company recorded $311 million in non-cash expenses
         | arising from the conversion of promissory notes, and the
         | associated elimination of prior liabilities, immediately before
         | the closing of TMTG's merger with DWAC.
         | 
         | Anyone looking at the SEC filings to see whose promissory
         | notes?
        
       | mikestew wrote:
       | $750K in revenue? <$300 million on-hand? I'm surprised it's
       | lasted this long. But most shocking of all: $6.6 billion-
       | with-a-"b" market cap? Who the hell bids this shit up? Who but
       | DJT himself would touch this stock?
       | 
       | But while Truth Social is on it's way to being delisted, today I
       | learned a valuable lesson: don't make the stock symbol your
       | initials. Someone is not going to be pleased when "DJT" is a
       | penny stock trading OTC.
        
         | rc_kas wrote:
         | We live in crazy world. I'll repeat it until I'm blue in the
         | face: The Republican party is the result of the most effective
         | propaganda organization in the history of the world.
        
         | moomin wrote:
         | It would not be the first company with stock ticker DJT
         | launched by Donald Trump Jr to go bust.
         | 
         | https://amp.cnn.com/cnn/2024/03/25/investing/trump-stock
        
         | ceejayoz wrote:
         | > Who the hell bids this shit up? Who but DJT himself would
         | touch this stock?
         | 
         | Oligarchs who can't otherwise send Trump billions in campaign
         | contributions. Bid it up, let him sell, and suddenly he owes
         | the bonesaw and polonium people a big favor.
        
       | endisneigh wrote:
       | I'm very curious to the price action of this stock if trump were
       | to win reelection.
       | 
       | Normally I wouldn't think of something so ridiculous but I could
       | imagine trump forcing his entire administration of loyalists to
       | use it for communications with the public.
        
       | throwaway4736 wrote:
       | I hope all of these fucking idiots go bankrupt. And by all I mean
       | all: employees, investors, banks that support it. What a
       | completely asinine and embarrassing operation, top to bottom.
        
       | Kye wrote:
       | Meanwhile all the other Mastodon instances run on Patreon
       | donations.
        
       ___________________________________________________________________
       (page generated 2024-05-20 23:00 UTC)