Trump's Truth Social is now more valuable than Musk's X
Donald Trump's social media venture, Truth Social, has overtaken Elon Musk's X in terms of market value. The surge comes on the heels of a massive spike in the stock price of Trump Media and Technology Group (TMTG), Truth Social's parent company. TMTG now has a market cap of over $10 billion after its shares quadrupled since late September. Meanwhile, X is valued at around $9.4 billion according to Fidelity Investments' recent valuation of its stake in the company.
TMTG's stock performance and Trump's political prospects
Interestingly, TMTG's stock performance seems more linked to Trump's political prospects than the company's profitability. As investors sense a boost in his chances of returning to the presidency, the stock has skyrocketed. On Tuesday alone, it surged over 12% to $53.30, after a 21.6% jump on Monday. The rapid movement even prompted temporary halts in trading during the morning session due to its volatility.
TMTG's financial struggles and market comparison
Despite its stellar stock performance, TMTG has been struggling financially. The Florida-based company posted a loss of over $16 million in the quarter ending in June, while earning just $837,000 in revenue. However, its current market value now exceeds that of several popular firms including Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro—the maker of the iconic Monopoly game.
Musk's support for Trump and investment in X
Musk, the world's richest man and a key supporter of Trump's re-election campaign, has promised more than $70 million to support Trump. He has also held a few town halls recently in support of the former president. When Musk bought X in October 2022, it was worth approximately $44 billion.
