Big Investments: Trump Media Outvalues Musk's Twitter

It seems like a lot has changed in the world of social media and politics. Trump Media & Technology Group, which is the parent company of Trump's social media platform Truth Social, is now valued at a whopping $10 billion! This sudden jump is quite a turnaround from late September when its shares were only worth around a quarter of that. While Trump Media is soaring, Musk's X Holdings (formerly Twitter) is valued at about $9. 4 billion. This significant plunge in value followed a rather steep climb. Musk bought Twitter in October 2022 for around $44 billion, and Fidelity Investments valued its stake at $19. 7 million at that time. However, a recent regulatory filing shows that Fidelity's Blue Chip Growth fund now values its stake in X Holdings at just $4. 2 million. One key reason for Trump Media's surge is speculation about Trump's presidential re-election chances. The company's stock tends to be more influenced by Trump's odds of winning than its own profit prospects. Interestingly enough, Musk has been quite supportive of Trump's bid, investing over $70 million to boost his campaign and even hosting town halls for the former president. But let's not forget, TMTG isn't exactly a profit powerhouse yet. Based in Sarasota, Florida, the company has been struggling to raise revenue and has been losing money. In the quarter ending in June, for example, it lost more than $16 million while only generating about $837, 000 in revenue. Despite these challenges, Trump Media is now worth more than several well-known companies, such as Caesars Entertainment, Match Group, Walgreens Boots Alliance, and even Hasbro, the company behind the classic board game Monopoly. Isn't that something?