In 2023, Trump Media generated just $4.1 million in revenue while racking up a net loss of $58.2 million. In the first nine months of 2024, it only generated $2.6 million in revenue as its net loss widened to a whopping $363 million. With an enterprise value of $5.44 billion, its stock trades at 1,322 times last year's revenue -- so it's a meme stock that is mainly being propped up by the news cycle as it relates to President-elect Donald Trump instead of operating a sustainable business model.
Unlike other social media companies, Trump Media doesn't disclose its number of active users, ad impressions, or average revenue per user. So there are very few financial metrics available to analyze the health of the business. It's getting ready to launch its own streaming video platform, but that's a notoriously expensive market to break into.
Meta is the world's largest social media company. It served 3.29 billion daily active people across its entire family of apps (Facebook, Instagram, Messenger, and WhatsApp) in its latest quarter. That represented 5% user growth from a year earlier. In 2023, Meta's revenue and earnings per share (EPS) grew 16% and 73%, respectively.
Instead of chasing Trump Media's wild short-term swings and hoping it somehow scales up its business, investors with a long-term mindset should simply buy two more reliable social media stocks instead: Meta Platforms and Pinterest.
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