Trump Media & Technology Group (TMTG), the parent company of the social media platform Truth Social, has experienced a remarkable surge in stock value, climbing by more than 200% in the past month. This rapid growth has been largely fueled by speculation about Donald Trump's potential return to the White House, as betting markets reflect increasing confidence in a Trump election victory. As a result, the company's stock closed at $51.51 per share on Tuesday, up from $16.07 just a month earlier.
This stock rally has pushed TMTG's valuation to over $10 billion, surpassing the estimated worth of Elon Musk's X platform (formerly known as Twitter), which is valued at approximately $9.4 billion. The leap is significant given the challenges TMTG has faced in generating revenue. According to SEC filings, the company made just $837,000 in the last quarter, which is less than the average revenue of a single McDonald's restaurant. Despite this, TMTG's market value now exceeds well-known corporations such as Walgreens Boots Alliance and Hasbro, even as the company continues to lose money.
TMTG's stock has been highly volatile, reflecting the fluctuating nature of Trump's public presence and political fortunes. The company's shares hit a high of $79.38 in March when it first went public but fell nearly 40% in June following Trump's legal troubles related to charges of falsifying business records. Similarly, the stock rose by more than 60% after a failed assassination attempt on Trump in July, before suffering another drop when Trump returned to X earlier this year, which dampened the appeal of Truth Social as Trump's exclusive social media platform.
Trump holds a significant 57.3% stake in TMTG, which means his portion is now valued at around $5.9 billion, up from $3.4 billion in August. This increase reflects the erratic performance of the company's stock, which tends to move sharply based on the headlines Trump generates.
Analysts point to the upcoming election as a key driver of TMTG's stock performance, with many traders viewing the company as a speculative bet on Trump's chances of winning. The connection between Trump's political fortunes and TMTG's stock price has been clear throughout his campaign. Investors see the company's success as closely tied to Trump's potential victory in the election, with share prices fluctuating in response to both Trump's legal troubles and his political rallies.
Interestingly, despite the company's meteoric rise in valuation, TMTG's user engagement on Truth Social remains dwarfed by that of its competitors. For instance, according to Similarweb, X attracted 706.2 million visits last month, while Truth Social garnered just 13.5 million. Even though X continues to dominate in terms of user activity, TMTG's stock has surged past the valuation of Musk's platform, highlighting the speculative nature of the market surrounding Trump's media ventures.
Musk, a prominent supporter of Trump, lifted the Republican nominee's ban from X earlier this year and has publicly endorsed Trump's re-election bid. Musk's involvement in the campaign extends beyond social media support; he has appeared at rallies and town halls in key battleground states such as Pennsylvania and has contributed more than $70 million to Trump's campaign efforts. His vocal backing of Trump has fueled speculation that a partnership between the two could reshape the media and tech landscape.
Despite TMTG's impressive market performance, its financial fundamentals remain shaky. The company continues to post losses, and with the election fast approaching, it remains to be seen whether the surge in stock price is sustainable or simply a reflection of the heightened political stakes surrounding Trump's campaign. As the election draws nearer, the connection between Trump's political ambitions and TMTG's financial health is likely to remain a focal point for investors and political observers alike.
