Trump’s social media company is now worth more than Musk’s

NEW YORK – Donald Trump’s Truth Social is now worth more than Elon Musk’s X, thanks to a recent surge in shares of the parent company of the former president’s social media platform.

Trump Media & Technology Group is now valued at more than $10 billion after its shares more than quadrupled since late September. Meanwhile, X Holdings is valued at about $9.4 billion, based on the most recent value that investment group Fidelity placed on its stake in the company formerly known as Twitter.

Shares of Trump Media, or TMTG, tend to move more with Trump’s re-election chances than with their own earnings prospects, and investors have seen his chances of regaining the presidency improve lately. On Tuesday, the stock rose nearly 9% to close at $51.51, on top of a 21.6% gain on Monday. The stock moved so sharply that trading was halted briefly several times during the morning. The stock had fallen to around $12 by the end of last month.

Trump created TMTG after being banned from Twitter and Facebook following the January 6, 2021 Capitol riot. He owns about 57% of the company but has no role in its leadership.

TMTG, based in Sarasota, Florida, is losing money and struggling to generate revenue. The company lost more than $16 million in the quarter ended in June while generating just $837,000 in revenue, according to regulatory filings.

When Musk acquired Twitter in October 2022, the company was valued at approximately $44 billion. At the time, Fidelity Investments valued its stake at $19.7 million. In a recent filing with regulators, Fidelity’s Blue Chip Growth fund said its stake in X Holdings was worth about $4.2 million.

Other companies that TMTG has grown into include: Caesars Entertainment, Match Group, Walgreens Boots Alliance and Hasbro, the maker of the Monopoly game.

Musk has become one of Trump’s most prominent supporters in his bid to get re-elected. Musk, the world’s richest man, has pledged more than $70 million to boost Trump and has recently held a series of town halls in support of the former president.