Trump Media Surpasses X in Valuation Amid Market Volatility
In a surprising turn of events, Trump Media & Technology Group (TMTG) has surpassed Elon Musk’s X Holdings in market valuation, with TMTG now valued at over $10 billion compared to X Holdings’ approximate $9.4 billion valuation.
TMTG, the parent company of former President Donald Trump’s social media platform Truth Social, has seen its stock price soar in recent weeks. On Tuesday, shares climbed 9%, following a 21.6% gain on Monday. These sharp movements have triggered multiple trading halts due to volatility.
Analysts attribute the surge in TMTG’s valuation to increasing speculation about Trump’s potential re-election, with the stock price seemingly moving in tandem with his political prospects.
TMTG was formed after Trump’s bans from major social media platforms following the January 6, 2021, Capitol riot. While Trump maintains majority ownership, he does not hold an operational role in the company. Despite its soaring valuation, TMTG has faced financial challenges, reporting significant losses and minimal revenue in recent filings.
In contrast, X Holdings, formerly Twitter, was acquired by Elon Musk for $44 billion in 2022. Since then, Fidelity has repeatedly adjusted its valuation of the company, with the latest estimate placing it at $9.4 billion.
Interestingly, Musk has recently shown support for Trump, making financial contributions to his re-election campaign and participating in public events backing the former president.
The market’s reaction to these developments reflects the complex interplay between politics, social media, and investor sentiment. As both companies continue to navigate challenges, their valuations remain subject to significant fluctuations influenced by political and market forces.
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