In a surprising financial turn, the value of Donald Trump's social media platform, Truth Social, has surpassed that of Elon Musk's X. The platform's parent company, Trump Media & Technology Group (TMTG), is now estimated to be worth over $10 billion. This valuation leap comes after its shares saw a dramatic increase since late September. In contrast, X Holdings' value lingers around $9.4 billion, as per the latest valuation by Fidelity on its investment in the company previously known as Twitter.
The remarkable surge in TMTG's stock appears to be closely tied to Trump’s potential return to presidential politics rather than the company’s financial performance, which has been less than stellar. On one occasion this week, shares surged over 12% in a single day, following a 21.6% increase the day before—a volatility that led to temporary halts in trading due to the rapid price movements.
TMTG was born out of necessity for Trump after his ban from major platforms like Twitter and Facebook in the aftermath of the January 6 Capitol riot. Despite owning a majority stake in TMTG, Trump is not involved in its day-to-day operations. From its headquarters in Sarasota, Florida, TMTG has faced significant financial challenges, reporting a loss of more than $16 million for the quarter ending June while only bringing in revenue close to $837,000.
The shift in fortunes for Musk's acquisition is stark when considering Twitter's $44 billion valuation at his takeover last year versus Fidelity Investments’ recent assessment of their stake at merely $4.2 million within X Holdings.
Curiously enough, among TMTG’s new financial competitors are well-known entities such as Caesars Entertainment and Walgreens Boots Alliance—showcasing just how significant this valuation spike has been.
Adding an intriguing layer to this narrative is Musk’s vocal support for Trump’s re-election campaign. As one of the world’s wealthiest individuals, Musk has not shied away from using his resources and platforms to promote Trump’s political ambitions.
This unexpected twist in the social media landscape underscores the unpredictable nature of tech investments and how they can be influenced by more than just market fundamentals—particularly when high-profile personalities are involved.
The remarkable surge in TMTG's stock appears to be closely tied to Trump’s potential return to presidential politics rather than the company’s financial performance, which has been less than stellar. On one occasion this week, shares surged over 12% in a single day, following a 21.6% increase the day before—a volatility that led to temporary halts in trading due to the rapid price movements.
TMTG was born out of necessity for Trump after his ban from major platforms like Twitter and Facebook in the aftermath of the January 6 Capitol riot. Despite owning a majority stake in TMTG, Trump is not involved in its day-to-day operations. From its headquarters in Sarasota, Florida, TMTG has faced significant financial challenges, reporting a loss of more than $16 million for the quarter ending June while only bringing in revenue close to $837,000.
The shift in fortunes for Musk's acquisition is stark when considering Twitter's $44 billion valuation at his takeover last year versus Fidelity Investments’ recent assessment of their stake at merely $4.2 million within X Holdings.
Curiously enough, among TMTG’s new financial competitors are well-known entities such as Caesars Entertainment and Walgreens Boots Alliance—showcasing just how significant this valuation spike has been.
Adding an intriguing layer to this narrative is Musk’s vocal support for Trump’s re-election campaign. As one of the world’s wealthiest individuals, Musk has not shied away from using his resources and platforms to promote Trump’s political ambitions.
This unexpected twist in the social media landscape underscores the unpredictable nature of tech investments and how they can be influenced by more than just market fundamentals—particularly when high-profile personalities are involved.
