Donald Trump's Truth Social is now worth more than Elon Musk's X, thanks to a recent run-up in the shares of the parent company of the former president's social media platform.
Trump Media and Technology Group is now valued at over USD 10 billion after its shares more than quadrupled since late September. Meanwhile, X Holdings is valued at around USD 9.4 billion, based on the most recent value the investment group Fidelity assigned to its stake in the company formerly known as Twitter.
The stock of Trump Media, or TMTG, tends to move more with Trump's re-election odds than on its own profit prospects and investors have seen his chances of retaking the presidency improving of late. On Tuesday, the stock rose more than 12 per cent to USD 53.30, on top of a 21.6 per cent gain Monday. The stock was moving so sharply that trading was briefly halted several times during the morning. The stock had dropped to roughly USD 12 late last month.
Trump created TMTG after he was banned from Twitter and Facebook following the January 6, 2021, Capitol riot. He owns about 57 per cent of the company but has no role in running it.
Based in Sarasota, Florida, TMTG has been losing money and struggling to raise revenue. It lost more than USD 16 million in the quarter ending in June while generating only USD 8,37,000 in revenue, according to regulatory filings.
When Musk took over Twitter in October of 2022, the company was valued at around USD 44 billion. At that time, Fidelity Investments valued its stake at USD 19.7 million. In a recent regulatory filing, Fidelity's Blue Chip Growth fund said its stake in X Holdings was worth about USD 4.2 million.
Other companies TMTG is now bigger than 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. The world's richest man, Musk has committed more than USD 70 million to boost Trump and has recently held a number of town halls in support of the former president.