The Trump Media & Technology Group (TMTG), the parent company of Truth Social, has overtaken Elon Musk’s X (formerly Twitter) in market value. As Election Day draws near, TMTG’s recent stock surge has boosted its valuation to over $10 billion—surpassing X’s estimated worth of $9.4 billion, as assessed by Fidelity Investments.
TMTG shares have quadrupled since late September, closing on Tuesday with a 9% rise at $51.51 per share. The stock’s movement has been highly volatile, experiencing multiple halts in trading as excitement grew among investors. Just last month, TMTG’s shares were valued around $12, underscoring the company’s fluctuating valuation, which investors view largely as a speculative bet on Trump’s potential electoral success on November 5.
Financial Struggles Amid Valuation Gains
Despite TMTG’s impressive valuation leap, the company has faced notable financial hurdles. According to regulatory filings, TMTG reported over $16 million in losses for the quarter ending in June, with revenues of only $837,000. Since its inception, Truth Social has struggled to attract the same level of engagement as Musk’s X. While X drew 706.2 million visits in September, Truth Social attracted just 13.5 million visitors in the same month, according to Similarweb.
Founded in response to Trump’s bans from Twitter and Facebook following the January 6, 2021, Capitol riot, Truth Social markets itself as a free-speech platform. While Trump holds a 57% stake in the company, he does not manage its day-to-day operations, with CEO Devin Nunes, former Republican congressman, taking the reins.
X’s Market Decline Since Musk’s Acquisition
Musk’s acquisition of Twitter in October 2022 was valued at $44 billion, which has since declined. Fidelity’s recent valuation places X Holdings’ worth at approximately $9.4 billion, significantly down from its initial valuation. While Truth Social’s market cap has been driven by political speculation, X’s value continues to slide amid financial and operational challenges since its transformation from Twitter.
Musk and Trump’s Alliance in the 2024 Election
Musk has emerged as one of Trump’s prominent supporters during his re-election campaign. Over the summer, Musk officially endorsed Trump and has since actively campaigned for him, organizing town halls and making appearances in key states like Pennsylvania. Reports indicate Musk has contributed over $70 million toward Trump’s campaign efforts, adding another layer to their unique political and business connection.
ALSO READ: Did Elon Musk REALLY Buy $35M Texas Mansion For His 11 Kids And Their Mothers?
