Donald Trump's Truth Social is now worth more than Elon Musk's X

Former President Donald Trump's social media company, Truth Social, has surpassed the market value of Elon Musk's X (formerly Twitter).

What are the social platforms worth?

Trump Media & Technology Group (TMTG), Truth Social's parent company, is now worth just over $10 billion after its shares more than quadrupled since the end of September. This jump in valuation puts the company above X Holdings, which Fidelity most recently valued at $9.4 billion.

The rise in TMTG stock price appears to correlate less with business performance and more with Trump's political prospects. As the Republican presidential nominee remains in a tight race against Vice President Kamala Harris, the Democratic presidential nominee, investors have shown strong interest in the company.

On Tuesday, TMTG shares rose 9 percent to close at $51.51 after gaining 21.6 percent the previous day. Trading was so intense that it triggered multiple stops, a stark contrast to the stock's low of about $12 last month.

The Challenges of Truth Social

However, this comes as TMTG has faced significant financial hurdles. The Florida-based company, founded by Trump after he was removed from major social media platforms following the riots at the U.S. Capitol in January 2021, has suffered losses and struggled to generate revenue. According to regulatory filings, TMTG posted a loss of over $16 million in the quarter that ended in June and generated just $837,000 in revenue.

Earlier this month, the Associated Press (AP) reported that a recent regulatory filing shows that the chief operating officer of Truth Social's parent company has resigned and that the company must transfer nearly 800,000 shares to an investor following a court ruling.

COO Andrew Northwall resigned from Trump Media & Technology Group Corp. last month, according to a Securities and Exchange Commission filing. resigned. The filing said the company plans to “shift its responsibilities internally,” but no further details surrounding his departure were disclosed.

Despite these challenges, investor enthusiasm has resulted in the company being valued relative to other major players, including Caesars Entertainment and Hasbro.

Musk's X

Musk's first acquisition of Twitter in October 2022 was worth around $44 billion. At the time, Fidelity Investments valued his stake at $19.7 million. However, Fidelity's Blue Chip Growth Fund said its stake in X Holdings was worth about $4.2 million.

Meanwhile, Musk has expressed his support for Trump's presidential candidacy by pledging over $70 million and attending campaign events.

This article contains reporting from The Associated Press.