Donald Trump’s Truth Social Is Now Worth More Than Elon Musk’s X

Former President Donald Trump’s social media company, Truth Social, has surged past Elon Musk’s X (formerly Twitter) in market value.
Trump Media & Technology Group (TMTG), Truth Social’s parent company, now holds a valuation of just over $10 billion, after its shares more than quadrupled since late September. This valuation leap moves it above X Holdings, which Fidelity most recently valued at $9.4 billion.
The uptick in TMTG’s stock price appears to correlate less with business performance and more with Trump’s political prospects. As the GOP presidential nominee remains in a close race against Vice President Kamala Harris, the Democratic presidential nominee, investors have taken a keen interest in the company.
On Tuesday, TMTG shares rose 9 percent to close at $51.51, following a 21.6 percent gain the day before. Trading was so intense that it triggered multiple halts, a stark contrast to the stock’s low of approximately $12 just last month.
However, this comes as TMTG has faced significant financial hurdles. Founded by Trump after his removal from major social media platforms following the riot on the U.S. Capitol in January 2021, the Florida-based company has been losing money and struggling to raise revenue. TMTG reported a loss of over $16 million in the quarter ending in June while generating only $837,000 in revenue, according to regulatory filings.
Earlier this month, The Associated Press (AP) reported that a recent regulatory filing showed the chief operating officer of Truth Social’s parent company had stepped down and that the company is required to transfer nearly 800,000 shares to an investor following a court ruling.
According to a Securities and Exchange Commission filing, COO Andrew Northwall resigned from Trump Media & Technology Group Corp. last month. The filing noted that the company plans to “transition his duties internally,” but no further details were provided about his departure.
Despite these challenges, investor enthusiasm has driven the company’s valuation above other major players, including Caesars Entertainment and Hasbro.
Musk’s initial acquisition of Twitter in October of 2022 was valued at around $44 billion. At that time, Fidelity Investments valued its stake at $19.7 million. However, Fidelity’s Blue Chip Growth fund said its stake in X Holdings was worth about $4.2 million.
Meanwhile, Musk has thrown his support behind Trump’s presidential bid, pledging over $70 million and participating in campaign town halls.
This article includes reporting from The Associated Press.