Donald Trump's Truth Social, the social media platform launched by the former president, has seen a significant surge in value, surpassing Elon Musk's X in market worth. The parent company of Truth Social, Trump Media & Technology Group (TMTG), is now valued at over $10 billion, with its shares quadrupling since late September.
On the other hand, X Holdings, the company formerly known as Twitter, is valued at around $9.4 billion based on recent assessments by investment group Fidelity.
The stock of TMTG has been closely tied to Trump's re-election odds, with investors observing an improvement in his chances of returning to the presidency. The stock price of TMTG rose nearly 9% on Tuesday, closing at $51.51, following a 21.6% gain the previous day. The stock's volatility led to multiple trading halts during the morning session, after dropping to $12 last month.
Trump established TMTG after being banned from major social media platforms like Twitter and Facebook in the aftermath of the January 6, 2021, Capitol riot. Despite owning a majority stake of about 57% in the company, Trump does not play an active role in its operations.
Based in Sarasota, Florida, TMTG has faced financial challenges, reporting losses exceeding $16 million in the quarter ending in June, with revenue of only $837,000 according to regulatory filings.
When Musk acquired Twitter in October 2022, the company was valued at approximately $44 billion. Fidelity Investments valued its stake at $19.7 million at that time. However, a recent filing by Fidelity's Blue Chip Growth fund indicated a stake worth about $4.2 million in X Holdings.
Noteworthy is that TMTG now surpasses the market value of companies like Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro, the maker of Monopoly.
Musk has emerged as a vocal supporter of Trump's re-election campaign, committing over $70 million to support the former president and hosting town halls in his favor. As the world's wealthiest individual, Musk's backing has added a significant dimension to Trump's political aspirations.
