Thanks to the recent surge in stock prices of Trump Media Technology Group (TMTG), the latest valuation of Truth Social, a social media platform created by former US President and Republican presidential candidate Trump, has surpassed its biggest competitor, X platform owned by the world's richest man Elon Musk.
As of Tuesday, the stock price of Trump Media Technology Group, the parent company of Truth Social, has surged 333% since its low at the end of September, with a valuation of $10.6 billion.
And Fidelity Investment's latest valuation of X is only $9.4 billion. Fidelity regularly updates its valuation expectations for the social media platform as it holds shares in X.
Since Musk's acquisition of X for a high price of $44 billion in October 2022, the platform's valuation has decreased by 79%.
Trump Media's valuation of $10.6 billion also makes it more valuable than The New York Times, which is valued at around $9.2 billion.
The soaring valuation of Trump Media Technology Group is not based on fundamentals, but on the likelihood of Trump winning the presidential election.
On the eve of the US presidential election, the "Trump deal" has heated up sharply as investors believe there is a high chance of Trump returning to the White House. The odds in the gambling market show that Trump has a much higher chance of winning the election than Harris.
After Trump held an important campaign rally at Madison Square Garden in New York last weekend, the stock price of Trump Media Technology Group began a meme like rebound. On Tuesday, the stock was suspended multiple times due to severe fluctuations.
According to the 10-Q filing submitted by Trump Media Technology Group to the US Securities and Exchange Commission, the company's revenue for the first half of 2024 was only $1.6 million, with a loss of up to $344 million.
Trump himself is also the big winner of the "Trump deal" heating up. According to Bloomberg data, his net worth has almost doubled in the past few months, reaching over $8 billion, mainly driven by the rise in the stock price of Trump Media Technology Group.
As of Tuesday, Trump holds nearly 115 million shares of Trump Media Technology Group, worth approximately $6.2 billion.