Trump Media & Technology Group is now valued at more than $10 billion after its shares more than quadrupled since late September.
In the meantime, X Holdings is valued at approximately $9.4 billionbased on the most recent value that investment group Fidelity assigned to its stake in the company formerly known as Twitter.
Shares of Trump Media, or TMTG, tend to move more along the way Trump’s re-election chances rather than on his own earnings prospects, and investors have seen his chances of regaining the presidency improve of late.
Shares of Trump Media, or TMTG, tend to move more with Trump’s re-election chances than with their own earnings prospects. AP
On Tuesday, the stock rose nearly 9% to close at $51.51, on top of a price of $51.51 Monday 22% gain. The stock moved so sharply that trading was halted briefly several times during the morning. The stock had dropped to about $12 at the end of last month.
Trump created TMTG after being banned from Twitter and Facebook following the January 6, 2021 Capitol riot. He owns about 57% of the company but has no role in its leadership.
TMTG, based in Sarasota, Florida, is losing money and struggling to generate revenue. It lost more than $16 million in the quarter ending in June while generating just $837,000 in revenue, according to regulatory filings.
When Musk acquired Twitter in October 2022, so was the company valued at approximately $44 billion. At the time, Fidelity Investments valued its stake at $19.7 million. In a recent filing with regulators, Fidelity’s Blue Chip Growth fund said its stake in X Holdings was worth about $4.2 million.
When Musk acquired Twitter in October 2022, the company was valued at approximately $44 billion. Above, Musk speaks at Donald Trump’s rally on Sunday. AP
Other companies that TMTG has grown into include: Caesars Entertainment, Match Group, Walgreens Boots Alliance and Hasbro, the maker of the Monopoly game.
Musk has become one of them Trump’s most prominent supporters in his bid to be re-elected. The richest man in the world, Musk has pledged more than $70 million to boost Trump and has recently held a number of town halls in support of the former president.