Truth Social’s Profit Margin Imploded to -11,000%… Here’s the Wild Reason Why

Right after Trump won the election… a lot of people I know (friends, family, my Grandpa who watches cable news at full volume) genuinely believed that if Trump became president, all our problems would vanish. Taxes? Gone (although I’m still hoping he lowers them, that External Revenue Service is a genius marketing idea). 

Gas prices? 25 cents a gallon. The economy? Roaring like it’s the golden age. But here we are in 2025, and, well… reality is a little more complicated. The U.S. government isn’t a magic wand factory, and even with a pro-business, pro-crypto president in office, things take time.

Take crypto, for example. Trump’s easily the most pro-Bitcoin president we’ve ever had, yet BTC and the broader crypto market are still getting clobbered. That’s not because of anything Trump did or didn’t do… it’s just how markets work. Inflation and interest rates are still making homeownership feel like a distant dream. You could put Trump’s face on a $20 bill, and eggs would still cost half your paycheck. Why? Because there aren’t enough chickens to keep up with America’s love for breakfast sandwiches. Meat prices? Still through the roof, not because of government policy, but because cattle don’t suddenly multiply just because there’s a new administration.

And the same logic applies to Trump’s own company, Truth Social. If you bought DJT stock thinking, Well, if the guy owns the White House, surely his stock price will rocket to the moon, you're probably holding your face in your hands right now. DJT is down 30% this year, and instead of raking in profits, the company seems to have perfected the art of losing money at an elite level.

Let’s talk about Donald Trump Jr., a board member at TMTG. In 2024, he made a casual $813,000 for his “work” as a director. And by “work,” I mean he attended exactly two out of five board meetings. That’s nearly 25% of the company’s total revenue for the year ($3.6 million) going straight into Junior’s pockets for dialing into Zoom twice. But don’t worry, he was definitely engaged. A company spokesperson even claimed he was “highly engaged” in board matters. Maybe he was just really, really engaged in those two meetings. Or maybe “engagement” now includes showing up to Truth Social’s Mar-a-Lago pool party, which conveniently shifted $78,000 from Trump Media’s public company into Trump’s private club.

Speaking of money flying out the window, let’s check in on Devin Nunes, the former congressman turned Trump Media & Technology Group CEO (Truth Social’s parent company). Nunes pulled in $47 million in total compensation in 2024, despite the company racking up $401 million in net losses. For those keeping score at home, that’s a negative 11,000% profit margin. This dude is making top-tier executive money at a company that constantly acts like they have Nvidia-like revenue.

His pay package included a $1 million base salary, a $600,000 bonus (for what, exactly?), $44.1 million in stock awards, and an extra $1.2 million in stock compensation. If this seems wildly detached from financial reality, that’s because it is. SEC filings show that Trump Media lost over $400 million last year while making just $3.6 million in revenue. That’s the equivalent of running a lemonade stand, selling $36 worth of drinks, and paying yourself a $400 salary for the day.

If you’re wondering how a company that loses more than 100 times what it makes is still operational, you’re not alone. Investors seem to be catching on that Truth Social isn’t exactly a great business model yet, and the stock price reflects that reality. Even in the world of meme stocks, where fundamentals are often ignored, there’s usually a limit to how much irrational hype can prop up a stock. At some point, investors ask themselves, Wait… do they actually make money? And when the answer is “No, in fact, they lose an ungodly amount of it”, the sell-off begins.

If you thought Trump taking office would single-handedly send DJT stock to the moon, this year has been a tough wake-up call. Running the country doesn’t automatically make your company a success… especially when your board is treating the company’s revenue like their personal checking account.

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Stock.News does not have positions in companies mentioned.