Trump Media is worth almost as much as Elon Musk’s X
Trump Media & Technology Group, which operates the social media network Truth Social, has seen its shares soar in the weeks leading up to the Nov. 5 presidential election — and is currently worth almost as much as Elon Musk’s X, the social media stock. media company formerly known as Twitter.
On Monday, shares of TMTG, which trade under the symbol “DJT,” rose 17% to $45.58/share as of 11:15 a.m. ET, following Trump’s Sunday rally at Madison Square Garden in New York City. That gives TMTG, which has reported total revenue of $1.6 million and steep losses for the first half of 2024, a market capitalization of about $9.1 billion.
Musk, who acquired Twitter in 2022 in a $44 billion deal, has seen the value of the company – which he renamed X – fall significantly since his takeover. A disclosure last month by Fidelity, which owns a minority stake in X, suggested the company is valued at $9.4 billion. reported by Forbes.
Trump owns 56.6% of TMTG’s outstanding shares, making his stake currently worth more than $5 billion.
Industry analysts believe the jump in TMTG’s stock price reflects growing enthusiasm among its investors that Trump will win the 2024 presidential election against Vice President Kamala Harris. Referring to TMTG’s rising share price, Gene Munster, managing partner of venture capital firm Deepwater Asset Management, said: told CNN in an article published Monday: “I’ve never seen anything like it. The value of this company is almost entirely based on the outcome of elections.”
Musk, the world’s richest person and CEO of Tesla and SpaceX, is also a major Trump backer. The techno billionaire spoke at Trump’s MSG event on Sunday.
TMTG, which trades on the Nasdaq, hit a recent low closing price of $12.15 per share on September 23 in the wake of the expiration of a six-month lock-up period during which TMTG insiders were not allowed to sell their shares. Trump has said he has “absolutely no intention” of selling his shares.
TMTG has not released any significant financial news that would have led to the stock’s massive rally. For the second quarter of 2024, TMTG reported $836,900 in net sales and a net loss of $16.37 million, according to its 10-Q SEC filing for the period. For the first quarter, the company reported revenue of $770,500 and a net loss of $327.6 million; Most of the loss for the first three months of the year was due to costs related to TMTG’s merger with special purpose acquisition company Digital World Acquisition Corp. to become a publicly traded company.
TMTG calls Truth Social a “safe haven for free speech amid increasingly strict censorship by Big Tech companies.” Trump founded TMTG in 2021 after the former president was kicked off Twitter (now called 2021. at the US Capitol.
Musk reinstated Trump’s account on However, Truth Social remains Trump’s favorite social media platform.
Truth Social launched in early 2022. The company did not disclose how many people use Truth Social, saying in a recent filing: “TMTG believes at this time in development that sticking to traditional key performance indicators, such as signups, average revenue per user, ad impressions and pricing, or active user accounts, including monthly and daily active users, could potentially divert focus from strategic evaluation regarding the progress and growth of its business.”
