Donald Trump Launches Company, Earns Billions, and Surpasses Elon Musk

Written by Fabio Lucas Carvalho

Published on 31/10/2024 at 09:39

Foto: Reprodução

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Former U.S. President Has A Company Worth More Than A Major Company Owned By Billionaire Elon Musk

Elon Musk is the richest man in the world with a fortune formed by stakes in several successful companies, such as Tesla, SpaceX, and X, for example. Donald Trump is also a billionaire, but with a fortune of 4 billion dollars, much smaller than that of his South African counterpart.

However, Truth Social, the social network launched by Donald Trump after his exit from Twitter, has surprised the market with a significant valuation.

With a recent rise in stock prices, the platform now has a value greater than that of X Holdings, Elon Musk’s company formerly known as Twitter.

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While Musk acquired the social network for 44 billion dollars, X is currently valued at around 9.4 billion, according to the investment group Fidelity. In contrast, Trump Media and Technology Group (TMTG), responsible for Truth Social, has already surpassed the 10 billion mark.

The rise of Truth Social has been driven by a significant appreciation in the stock of the parent company, TMTG. Since the end of September, the company’s stocks have increased dramatically, quadrupling in value.

Recently, the shares rose more than 12%, reaching 53.30 dollars. The sharp fluctuation in prices generated so much movement that the market had to temporarily halt trading to stabilize the value.

This appreciation comes amid growing investor expectations about Trump’s possible return to the presidency of the United States. It is noted that TMTG’s stock tends to reflect Trump’s popularity and political chances more than the company’s potential for profit.

Despite the appreciation, TMTG faces considerable financial challenges. Based in Sarasota, Florida, the company reported a loss of over 16 million dollars in the second quarter of this year, generating revenue of only 837 thousand dollars during the period. This scenario highlights that Truth Social still has a long way to go before it can establish itself as a profitable and self-sustaining platform.

Trump created TMTG after being banned from traditional social networks like Twitter and Facebook due to the events of January 6, 2021, at the Capitol. Although he owns 57% of the company, the former president does not play an active role in management.

Comparison with Elon Musk’s X

When Musk acquired Twitter in 2022, the social network was worth approximately 44 billion dollars. However, since the acquisition, the company’s market value has decreased, currently standing at around 9.4 billion dollars. Fidelity, which holds a stake in X Holdings, recently revised the value of its share, estimating it at only 4.2 million dollars.

Elon Musk, now a declared supporter of Trump, has invested significantly in his re-election campaign, with amounts exceeding 70 million dollars. Recently, Musk held rallies in support of the former president, particularly in Pennsylvania, a strategic state.

Expansion of TMTG and Partnerships

Trump Media and Technology Group has been seeking to diversify its operations. Among the companies associated with TMTG are Caesars Entertainment, Match Group, Walgreens Boots Alliance, and Hasbro, the manufacturer of games like Monopoly.

These partnerships reflect a strategy for the group’s expansion, aiming to solidify its presence in the digital market and broaden the reach of Truth Social.

However, while TMTG and Truth Social advance in market value, financial sustainability remains a critical point for the company. The pressure on TMTG’s management will increase as the platform attempts to balance its financial operations with the need for growth.

Donald Trump Launches Company, Earns Billions, and Surpasses Elon Musk

Former U.S. President Has A Company Worth More Than A Major Company Owned By Billionaire Elon Musk

Comparison with Elon Musk’s X

Expansion of TMTG and Partnerships

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Donald Trump Launches Company, Earns Billions, and Surpasses Elon Musk

Former U.S. President Has A Company Worth More Than A Major Company Owned By Billionaire Elon Musk

Expansion of Truth Social and Stock Valuation

Challenges of Truth Social and TMTG

Comparison with Elon Musk’s X

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