Shares of Trump Media & Technology Group (TMTG) have skyrocketed more than 200 percent in the past month, a trend driven by increased speculation surrounding Donald Trump‘s potential return to the White House.
The former president’s company saw its stock close Tuesday at $51.51 per share, up from $16.07 on Sept. 30. The notable increase has coincided with betting markets, which have shown that a Trump election victory is becoming increasingly likely.
The Truth Social parent is now valued at over $10 billion, surpassing its estimated value of $10 billion Elon Musk‘s X platform (formerly known as Tweet), which AP reported was $9.4 billion. Musk is a prominent and outspoken supporter of Trump and has lifted the position Republican the nominee’s X-ban earlier this year. Trump was banned from the site in 2021 for his alleged incitement of violence on January 6, when a mob descended on the Capitol to protest the Congress certify Joe Biden‘s victory.
Other Companies TMTG is now bigger than Walgreens Boots Alliance and Hasbro, according to AP, despite the Sarasota, Florida-based company losing money and struggling to generate revenue. TMTG earned $837,000 last quarter, according to SEC filings – less than one McDonald’s restaurant.
Getty Images
According to AP, Trump is the majority shareholder of TMTG, with 57.3 percent of the shares in his possession. This means his total stake in the company is worth about $5.9 billion, up from $3.4 billion in August. This reflects the volatility of the stock, whose value often fluctuates depending on the type of news the majority shareholder makes that day.
Shares peaked at $79.38 when the company first went public in March, and have remained volatile since. Shares fell nearly 40 percent in June when Trump was found guilty on 34 counts of falsifying company records relating to hush money allegedly paid to adult film actors Stormy Danielsahead of the 2016 presidential election.
Then, after his attempted murder in July, TMTG shares rose more than 60 percent.
Trump’s return to X led to another sharp decline in value to TMTG, as Truth Social’s appeal is largely built around the fact that it is Trump’s favorite social media site.
This famous volatility was interrupted several times on Tuesday because the value changed so sharply, according to the Associated Press. On Wednesday, shares fell as much as 9.53 percent premarket, trading at $48.65 at the time of writing.
Newsweek contacted a TMTG spokesperson via email for comment.
Do you have a story we should discuss? Do you have questions about investing or the 2024 elections?