NEW YORK — Recent developments have elevated the value of Donald Trump’s social media platform, Truth Social, now exceeding that of Elon Musk’s X. The parent company of Trump Media & Technology Group (TMTG) has seen its valuation rise above $10 billion following a significant increase in stock prices, which have more than quadrupled since late September. In contrast, X Holdings is currently valued at approximately $9.4 billion according to recent evaluations by investment firm Fidelity on its stake in the platform previously known as Twitter.
The stock performance of TMTG is closely tied to the political prospects of Trump, particularly his chances for re-election, rather than its own financial performance. Investor sentiment regarding Trump’s renewed prospects has been optimistic, as evidenced by a notable Tuesday increase of over 12% in stock value, reaching $53.30, following a substantial 21.6% rise the day prior. The volatility was significant enough to trigger multiple trading halts during the morning session. Just a month ago, the stock had plummeted to around $12.
Founded by Trump after his bans from Twitter and Facebook following the January 6, 2021, Capitol insurrection, TMTG is primarily owned by Trump, who controls roughly 57% of the company but does not take an active managerial role. The company is headquartered in Sarasota, Florida, although it has been grappling with financial losses and struggles to generate revenue. In the quarter ending June, TMTG reported losses exceeding $16 million against merely $837,000 in revenue, as indicated in its regulatory disclosures.
In comparison, when Musk assumed control of Twitter in October 2022, the value of the company was around $44 billion, with Fidelity estimating its stake at approximately $19.7 million. However, a recent filing revealed that Fidelity’s Blue Chip Growth fund revised the valuation of its X Holdings stake down to about $4.2 million.
TMTG has now eclipsed several other companies in market value, including Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro, known for producing the classic Monopoly game.
Interestingly, Musk has emerged as one of Trump’s vocal supporters in his pursuit of re-election. The billionaire entrepreneur has reportedly invested over $70 million to help Trump’s campaign and has actively participated in numerous town hall events endorsing the former president.