Truth Social's COO Steps Down as Company Faces Share Release and Financial Struggles

A top executive at Trump Media & Technology Group Corp. has left the company, and a court ruling has ordered the release of nearly 800,000 shares to an early investor. The COO's departure comes as the company grapples with financial losses and tries to boost its revenue. Truth Social, the social media platform created by former President Donald Trump, has seen its stock price fluctuate and hit new lows recently. Truth Social was born out of a need for Trump to have his own voice after being banned from other platforms like Twitter and Facebook. The company runs the platform from Sarasota, Florida, but it hasn't been smooth sailing. Last year, they reported losses of nearly $58 million while making only $4. 1 million in revenue. The resignation of COO Andrew Northwall was announced last month through a Securities and Exchange Commission filing. The company plans to handle his duties internally for now. Before joining the company in December 2021, Northwall had experience working with other technology companies.A court in Delaware ruled that Trump Media must give ARC Global Investments II 785,825 shares of its stock. This was due to a disagreement over how many shares ARC should get after the company merged with Digital World Acquisition Corp (DWAC), which took Trump Media public as a special-purpose acquisition company, or SPAC. This ruling came just two weeks after former President Trump and other key players in the company were free to sell their shares, following the end of a lockup period. Trump owns 60% of the company's stock and has said he doesn't plan on selling any of it. Truth Social's stock price hit its lowest point ever when trading began after Trump was allowed to sell his stake. The stock has been considered a "meme stock" by some experts, which means it gets a lot of attention online and can quickly rise or fall in value beyond what analysts expect. The company started trading publicly in March, with shares reaching a high of $79. 38 on the Nasdaq during its debut. Since then, the stock has seen ups and downs, mostly driven by individual investors who are less experienced than day traders. As of Friday before the market opened, Trump Media & Technology Group's shares rose slightly to $16. 20. The company continues to face challenges in raising money and making a profit.