### Trump Media & Technology Group's Stock Surge Outshines Elon Musk's X

Trump Media & Technology Group (TMTG), the operator of the Truth Social platform, has experienced a remarkable increase in its stock value in the weeks leading up to the November 5 presidential election. As of Monday, the shares, trading under the symbol "DJT," rose by 21.6% to reach $47.36 each, reflecting a market capitalization of approximately $9.48 billion. This surge follows Donald Trump's rally at New York City's Madison Square Garden on Sunday.

Conversely, Elon Musk's X, formerly known as Twitter, has seen a significant decline in value since Musk acquired it for $44 billion in 2022. Last month, Fidelity, a minor stakeholder in X, valued the company at $9.4 billion, as reported by CNN, although other investors might assess it differently.

Trump holds 56.6% of TMTG's outstanding shares, making his stake worth over $5.3 billion. Industry analysts attribute the surge in TMTG's stock to investor confidence that Trump will prevail over VP Kamala Harris in the 2024 presidential election. Gene Munster, managing partner at Deepwater Asset Management, described the stock's performance as unprecedented, noting the company's value hinges largely on the election's outcome.

Despite the impressive stock performance, TMTG's financials do not reflect a similar success story. The company reported $1.6 million in revenue for the first half of 2024, with substantial losses. In the second quarter alone, TMTG declared $836,900 in net sales and a net loss of $16.37 million. For the first quarter, revenues stood at $770,500 against a net loss of $327.6 million, primarily due to expenses from its merger with Digital World Acquisition Corp.

Founded in 2021 by Trump, TMTG claims Truth Social is a platform for free expression, offering an alternative amid what it considers increasing censorship from Big Tech corporations. The platform was launched after Trump was banned from major social networks like Twitter, Facebook, Instagram, and YouTube post the January 6, 2021 U.S. Capitol attack. Though reinstated on these platforms by Musk and others, Trump continues to favor Truth Social.

Since launching in early 2022, TMTG has been cautious about disclosing user statistics. The company stated in a recent filing that focusing on conventional performance metrics might distract from its strategic growth goals.