Donald Trump’s Truth Social platform has seen a significant increase in value, now surpassing Elon Musk’s X Holdings. The parent company, Trump Media & Technology Group (TMTG), has experienced a quadrupling of its shares since late September, leading to a valuation of over $10 billion. In contrast, X Holdings, previously known as Twitter, is valued at approximately $9.4 billion according to Fidelity’s latest assessment.
TMTG’s stock performance is more closely tied to Trump’s re-election prospects rather than its financial performance. Investors have recently perceived an increase in his chances of returning to the presidency. On Tuesday, TMTG’s stock price rose by nearly 9%, closing at $51.51, following a 21.6% increase on Monday. The stock’s volatile movement led to temporary trading halts during the morning. In the previous month, the stock had plummeted to around $12.
Trump founded TMTG following his ban from Twitter and Facebook after the Capitol riot on January 6, 2021. He holds approximately 57% of the company but is not involved in its day-to-day operations. Headquartered in Sarasota, Florida, TMTG has been facing financial losses and challenges in generating revenue. It reported a loss of over $16 million in the quarter ending in June, with only $837,000 in revenue, as per regulatory filings.
When Musk acquired Twitter in October 2022, the company was valued at around $44 billion, with Fidelity Investments valuing its stake at $19.7 million. In a recent regulatory filing, Fidelity’s Blue Chip Growth fund indicated that its stake in X Holdings was worth about $4.2 million. TMTG now has a higher valuation than several other companies, including Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro, the creator of the Monopoly game.
Musk, the world’s richest man, has emerged as a prominent supporter of Trump’s re-election bid, committing over $70 million to support him and holding several town halls in his favor.
