Well, it looks like Truth Social is still searching for the “truth” behind making money. 

Trump Media, the media company started by former President Donald Trump, just posted a net loss of over $16 million for the second quarter of 2024. Yes, you read that right—$16 million, with revenue plummeting 30% to a sad $836,900. If you’re keeping score at home, that’s a far cry from the $1.2 million they brought in during the same quarter last year. And it doesn’t exactly inspire confidence in the company’s future.

So, what’s going on here? How does a company that brings in less than a million bucks in revenue still have a stock price of $26 dollars, when in reality it should be a penny stock? Well, it’s the kind of mystery that would give even Sherlock Holmes a migraine.

If you’ve been following along, Trump Media’s money problems aren’t exactly a new story. In fact, the company’s first public quarter revealed an unimaginable net loss of over $300 million. And while a $16 million loss might seem like pocket change in comparison, it’s hardly something to pop the bubbly and celebrate. Especially when half of that loss is tied up in legal expenses related to their merger with Digital World Acquisition Corp.

But before we declare this an all out sinking ship, there are a few lifeboats—if you can spot them, so bare with me. For starters, the company managed to trim down its losses from the $22.8 million it bled out during the same quarter last year. That’s right, the first silver lining is their losing less money. Give me a break, I’m trying my best here. 

But according to CEO Devin Nunes, no matter how bad things get, they’re not giving up without a fight. So how are they combatting the investor doubt? The company’s got big plans to build out their Truth+ streaming service and explore other growth opportunities. Because, hey, if you can’t make money with social media, why not try your hand at streaming? I’m sure Netflix is shaking in its boots.

Now, I know what you’re thinking: “How does a company with such dismal financials still have a market cap of nearly $5 billion?” Well, let’s just say that Trump Media has more in common with meme stocks than your average tech startup. The stock’s wild swings are fueled by social media hype, not by anything as boring as revenue growth or profitability. It’s a bit like betting on Tesla, you’re betting that Elon is going to deliver on his promises, and if he’s right you’ll get stupid rich.

Forget about the numbers though, Trump Media is all about the brand, and that brand is tied to one person: Donald J. Trump. The company’s future success (or failure) hinges on his popularity, ability to keep his loyal followers engaged, and let’s be real, winning the election. With 114.75 million shares under his belt, Trump’s not just the face of the company—he is the company.

In the end, Trump Media’s Q2 earnings report is not surprising. On the one hand, the losses are significant, and the revenue decline is troubling. On the other hand, they’ve got a strong balance sheet with $344 million in cash and zero debt, so they’re not exactly panhandling at Mar-a-Lago. Whether that’s enough to turn things around is anyone’s guess. But let’s not forget that as opposed to most small companies in the same position, the majority shareholder of this one is a billionaire, so if you’re an investor, that should give you some faith they can figure it out.

Stock.News has positions in Tesla and Netflix.