|
Trump Media & Technology Group is now valued at over $10 billion
after its shares more than quadrupled since late September.
Meanwhile, X Holdings is valued at around $9.4 billion, based on
the most recent value the investment group Fidelity assigned to
its stake in the company formerly known as Twitter.
The stock of Trump Media, or TMTG, tends to move more with
Trump’s re-election odds than on its own profit prospects and
investors have seen his chances of retaking the presidency
improving of late. On Tuesday, the stock rose almost 9% to close
at $51.51, on top of a 21.6% gain Monday. The stock was moving
so sharply that trading was briefly halted several times during
the morning. The stock had dropped to roughly $12 late last
month.
Trump created TMTG after he was banned from Twitter and Facebook
following the Jan. 6, 2021, Capitol riot. He owns about 57% of
the company but has no role in running it.
Based in Sarasota, Florida, TMTG has been losing money and
struggling to raise revenue. It lost more than $16 million in
the quarter ending in June while generating only $837,000 in
revenue, according to regulatory filings.
When Musk took over Twitter in October of 2022, the company was
valued at around $44 billion. At that time, Fidelity Investments
valued its stake at $19.7 million. In a recent regulatory
filing, Fidelity’s Blue Chip Growth fund said its stake in X
Holdings was worth about $4.2 million.
Other companies TMTG is now bigger than include: Caesars
Entertainment, Match Group, Walgreens Boots Alliance and Hasbro,
the maker of the Monopoly game.
Musk has become one of Trump's most prominent supporters in his
bid to get re-elected. The world’s richest man, Musk has
committed more than $70 million to boost Trump and has recently
held a number of town halls in support of the former president.
All contents © copyright 2024 Associated Press. All rights reserved
|
|
