NEW YORK (AP) — Donald Trump’s Truth Social platform has overtaken Elon Musk’s X in market valuation, thanks to a remarkable surge in the stock price of its parent company, Trump Media & Technology Group (TMTG). This valuation increase reflects changing dynamics in the social media landscape, influenced by political factors.
Valuation Overview
As of recent trading, TMTG is now valued at over $10 billion, a significant rise following a dramatic increase in stock prices that has seen shares quadruple since late September. In contrast, X Holdings, the parent company of the platform formerly known as Twitter, is currently valued at approximately $9.4 billion based on recent evaluations from Fidelity Investments.
The stock of TMTG has been closely linked to Donald Trump’s re-election prospects, which have reportedly improved in recent weeks. On Tuesday, TMTG’s stock rose nearly 9%, closing at $51.51, building on a 21.6% increase the previous day. Such volatility has led to multiple trading halts as shares surged, particularly after falling to about $12 a month ago.
Background on TMTG
Founded after Trump was banned from major social media platforms, TMTG aims to provide an alternative space for free speech. Despite owning approximately 57% of the company, Trump does not participate in its day-to-day operations. The company is based in Sarasota, Florida, and has faced challenges in generating revenue. It reported a loss of over $16 million in the quarter ending in June, with revenues only totaling $837,000.
Musk’s X Holdings and the Competitive Landscape
When Musk’susk acquired Twitter in October 2022, his X Holdings was valued at around $44 billion. However, following various changes and the platform’s rebranding, its value has significantly decreased. Recent filings indicate that FidelFidelity’se in X Holdings has dropped to approximately $4.2 million, highlighting the financial struggles the platform has encountered since Musk’Musk’sover.
Interestingly, TMTG’s market valuation now surpasses that of other major companies such as Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro, known for its Monopoly game.
The Political Dimension
Musk has emerged as a notable supporter of Trump, reportedly contributing over $70 million to bolster Trump’s election efforts. The intersection of social media and politics continues to shape the valuations and operations of these platforms, reflecting the intricate relationship between technology, finance, and political narratives.
Conclusion
The rapid rise in Trump Media’s valuation underscores the volatile nature of the social media market, which is heavily influenced by political events and perceptions. As both TMTG and X navigate their respective challenges, their competition highlights the evolving landscape of digital communication and engagement.
