Trump Media & Technology Group stock surges over fourfold—who are the biggest beneficiaries?
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Trump Media & Technology Group stock surges over fourfold—who are the biggest beneficiaries?
As the U.S. election approaches, the Trump trade is working again.
Navigating Web3 tides with focused insightsBy Jessy, Jinse Finance
As the U.S. election approaches, the "Trump trade" is working again—and Trump’s own business empire is benefiting directly.
Since September 24, shares of Trump Media & Technology Group (DJT) have surged over fourfold and are currently trading around $51.
Trump holds approximately 58% of the company, which was founded in 2021. Its social media platform is called "Truth Social." The company was established as Trump's response to being banned from major social platforms in 2021.
Reportedly, Truth Social has fewer than 100,000 daily active users, and Trump Media & Technology Group has remained unprofitable since its inception.
The stock’s rise has little to do with the company’s operations; instead, it is primarily driven by speculative bets on the so-called "Trump trade."
Market Cap Surpasses X, Yet Still Deep in Losses
Founded in February 2021, Trump Media & Technology Group is a media and technology company focused on social media, digital streaming, and information technology infrastructure. It currently operates the social network TRUTH Social, the video-on-demand service TMTG+, and the news outlet TMTG News, with plans to launch a solutions stack product in the future.
After the January 6, 2021, Capitol riot, Trump was banned from Facebook and Twitter, prompting him to create his own social media platform and establish Trump Media & Technology Group. Truth Social officially launched on February 21, 2022.
In terms of interface design, Truth Social closely resembles X—some would say it copies X outright.
Yet now, as Trump Media & Technology Group’s share price rises, its market capitalization has surpassed that of X. Currently, Trump Media & Technology Group is valued at approximately $10.3 billion, compared to X’s valuation of $9.4 billion (based on Fidelity’s valuation cited in a disclosure filing from September 2024).
However, Truth Social does not disclose user data, making it difficult to accurately assess its user base. According to Similarweb, the platform averaged only about 76,000 daily active users during the first half of this year.
Moreover, Trump Media & Technology Group has been consistently unprofitable since inception. In Q2 2024, it generated just $836,900 in revenue, while reporting a net loss of $16.368 million. This highlights how severely detached the stock’s current price is from its fundamentals.
Jay Ritter, a finance professor at the University of Florida, stated there is no evidence suggesting Trump Media & Technology Group will become a large, profitable enterprise, and its shares could potentially fall to $2 per share or lower.
Trump Is the Biggest Beneficiary
Nonetheless, the stock has clearly become a "meme stock," with prices driven more by sentiment and current events than by financial performance. As the U.S. election nears, interest in the stock is likely to intensify further.
It’s not just Trump Media & Technology Group’s stock that’s rising. Even a Chinese A-share software company named “Chuan Da Zhi Sheng” has seen its share price double over the past month. At their core, both stocks are meme stocks tied to trending political themes.
Not only individual supporters and retail speculators are buying Trump Media & Technology Group shares—institutional investors have also entered the market this year. Currently, institutional ownership stands at 10.59%, with most institutions establishing positions during Q2 2024. In July, when Trump was officially nominated as the Republican presidential candidate, institutional activity underscored the significance of betting on the "Trump trade" during an election year.
The biggest beneficiary of the stock’s surge remains Donald Trump himself. Back in 1995, Trump Hotels & Casino Resorts was listed on the NYSE under the ticker "DJT," but the company went bankrupt and was delisted in 2004. Now, nearly three decades later, a company controlled by Trump and using the same "DJT" ticker symbol has returned to Wall Street.
Owning a publicly traded company and holding a majority stake provides Trump with a powerful monetization channel.
According to The Wall Street Journal, Trump’s total net worth ranges between $7.5 billion and $10 billion. Much of his personal wealth is tied to his stake in Trump Media & Technology Group. As the largest shareholder, owning roughly 58% of the company, his holdings are currently worth about $6 billion.
However, if Trump were to sell his shares in Trump Media & Technology Group, the stock would likely experience a sharp decline.
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