Donald Trump's Truth Social Is Now Worth More Than Elon Musk's X. What's Behind The Surprising Upswing?

In a surprising turn of events, Donald Trump’s social media company, Truth Social, is now worth more than Elon Musk’s platform, X (previously known as Twitter). Truth Social’s parent company, Trump Media & Technology Group DJT, has seen a sharp rise in its stock price recently. This is the biggest reason for this change. However, it’s not that simple.

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A Quick Look At The Numbers

Trump Media & Technology Group (TMTG's) valuation has shot past $10 billion, putting it above Musk’s X, which has recently been pegged at about $9.4 billion. This is a steep fall from the $44 billion that Musk paid when he took over Twitter in 2022. For Trump, whose financial status has been turbulent over the years, this boost couldn't come at a better time. The value of TMTG alone has given his net worth a significant increase, with estimates placing it between $7.5 billion and $10 billion.

What's Fueling Truth Social's Value?

Truth Social's value seems to ride on more than its actual performance. Traders are betting that if Trump regains the White House in the upcoming election, the platform's value will stay high or even increase. Over the past few weeks, shares of TMTG have more than quadrupled, showing a 50% rise in just the last week before going down a little to $40 at the time of writing. However, it's worth noting that Truth Social isn't exactly a cash cow. In fact, TMTG reported just $837,000 in revenue last quarter while posting a hefty $16 million loss, according to regulatory filings.

But it's the political tie-ins and Trump's high-profile status that keep the stock in the spotlight. As Matthew Tuttle, CEO of Tuttle Capital Management, bluntly puts it, "If [Trump] loses, I think this thing goes to zero." That shows just how closely TMTG's fortunes are tied to Trump's own political prospects.

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Elon Musk's X: A Costly Gamble

Musk has publicly acknowledged that he overpaid for X, and since he took charge, the platform has been struggling to adapt. Musk has turned his attention to subscription models in an attempt to generate more steady revenue as advertising revenue has decreased. He's envisioned X as an "everything app" that might include everything from social connections to financial transactions.

Even Fidelity, one of the original investors, recently valued its stake in X at just $4.2 million — down from nearly $20 million when Musk first acquired the company. Still, Musk stays optimistic, even suggesting that X has the potential to reach a $250 billion valuation. But for now, the reality is that TMTG, with its high-flying stock prices, has moved ahead.

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A Boost From TMTG For Trump's Net Worth

Trump’s investment in TMTG, which has grown to comprise a significant portion of his portfolio, has significantly improved his financial situation. Trump hasn't sold any of his shares to fund his campaign, choosing to hold onto the value that TMTG brings. This lift also offsets some of the financial pressures his real estate holdings have faced amid declining office property values in the U.S.

Even with a more stable cash flow, however, the Trump Organization faces financial strains from Trump's ongoing legal battles, including criminal charges and civil fraud cases. And with the upcoming election on the horizon, the stakes are even higher: if he wins, TMTG's valuation could stay solid or even grow, but a loss could drastically impact its worth.

What's Next For Truth Social And X?

Musk’s X and Trump’s Truth Social are at distinct but equally important crossroads. The importance of Truth Social will keep changing depending on Trump’s political path. On the other hand, although there is no assurance that customers would accept the new course, Musk is hopeful that his idea of an “everything app” can restore value to X.

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