Truth Social has eclipsed the latest valuation of Elon Musk's X after Trump Media stock surges
- Trump Media's market value has eclipsed the latest valuation of Elon Musk's X.
- X's valuation is hard to assess as it is a private company, but Fidelity's updates provide a clue.
Truth Social parent company Trump Media and Technology Group could now be worth more than Elon Musk's X, the biggest competitor of the former president's social media site.
Shares of Trump Media have soared 333% since its late-September low, catapulting its valuation to $10.6 billion on Tuesday, according to data from YCharts.
That's higher than Fidelity Investment's most recent estimated valuation of X at $9.4 billion. Fidelity, which owns a stake in X, updates its valuation estimate of the social media platform periodically.
As of August 31, the investment giant valued its stake in the social media platform at $4.2 million, down 79% from when its stake was worth $19.7 million in 2022 when Musk took the company private at a $44 billion valuation.
Trump Media's $10.6 billion valuation also makes it more valuable than The New York Times, which is worth about $9.2 billion.
Trump Media's soaring valuation is less based on fundamentals and instead related to Donald Trump's odds of winning the Presidential election on November 5. The stock embarked on a meme-like rally following the president's event at Madison Square Garden in New York City. Trading in the shares was halted several times for volatility on Tuesday.
According to its 10-Q filings with the SEC, in the first half of 2024, Trump Media generated $344 million in losses on $1.6 million in revenue.
But investors are buying the stock regardless, and Trump is benefiting.
According to Bloomberg data, his net worth nearly doubled in the past few months to more than $8 billion, mostly driven by the rise in Trump Media stock.
Trump owns nearly 115 million shares of the company worth about $6.2 billion on Tuesday.