In a major shift within the tech and social media industries, Trump Media & Technology Group (TMTG), which operates Truth Social, has surpassed Elon Musk’s X (formerly Twitter) in market valuation just days before the upcoming election.
Valued at over $10 billion, TMTG has seen its stock quadruple since late September, positioning it above X’s latest valuation of approximately $9.4 billion.
Truth Social’s recent surge reflects investor confidence in former President Donald Trump’s campaign prospects, as the company has gained strong popularity among traders who anticipate a Trump victory. Trump himself retains a 57% stake in TMTG, which is now estimated at around $4 billion, contributing to the doubling of his net worth this October from just under $4 billion to $8 billion. TMTG’s stock saw a significant increase to $34.17 on Tuesday, closing up nearly 9%, following weeks of renewed optimism about Trump’s election odds.
Though Truth Social’s financials remain modest, reporting $837,000 in revenue for the June quarter and a $16 million loss, investor support suggests the company’s valuation has surged on the strength of Trump’s campaign momentum. A key factor in TMTG’s impressive market performance has been Trump’s appeal to a large and active user base, which, while smaller than X’s vast reach, offers a more focused, engaged audience.
Elon Musk, a strong ally of Trump’s 2024 campaign, has publicly endorsed the former president and contributed over $70 million to Trump’s reelection efforts. Musk has joined Trump at rallies and town halls, including in key battleground states like Pennsylvania, to energize voter turnout. His support adds further momentum to Truth Social’s rise, which aligns with growing betting odds for a Trump election win, reaching a 66% chance on Polymarket.
FOX Business and Forbes contributed to this report.
