In a surprising turn of events, the stock market valuation of Donald Trump’s Truth Social has exceeded that of Elon Musk’s X, previously known as Twitter, following a significant rally in anticipation of the upcoming election. On Tuesday, shares of Trump Media & Technology Group (TMTG) rose by 8.8%, leading to multiple trading suspensions due to heightened volatility.
In just a few weeks, TMTG has seen its valuation triple, fueled by Trump’s active engagement with voters as he campaigns for the presidency. Currently, Trump's majority stake in the company is valued at approximately $5.9 billion, while the firm’s overall market valuation reached $10.3 billion at the close of trading on Tuesday. This marks a notable leap beyond the estimated $9.4 billion valuation of X, which has been privately held since Musk's acquisition two years ago. The valuation for X is based on estimates from Fidelity, a significant shareholder.
Despite the disparity in user engagement—X attracting 706.2 million visits last month compared to Truth Social’s 13.5 million—the surge in TMTG’s stock has not deterred its investors. The company’s valuation now surpasses that of SiriusXM, a major radio network boasting approximately 33 million subscribers and reporting profits of $316 million in the second quarter, whereas TMTG recorded a net loss of $16.4 million in the same period.
TMTG's stock rally resembles the phenomenon seen with so-called “meme stocks,” such as GameStop, which experienced erratic surges driven by retail investors. Earlier this year, TMTG shares soared to over $66 in March, only to plummet to $12.15 last month. However, with polling indicating a close presidential race and betting markets favoring Trump, the stock has rebounded significantly, quadrupling in value since its September lows.
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