The Trump Media & Technology Group (TMTG), the parent company of the former president's Truth Social platform, is now valued higher than X, marking a significant shift in digital media as the U.S. political landscape heats up for the upcoming election.

As Election Day approaches on Nov. 5, Truth Social's valuation has surged, propelling TMTG to a newfound market position above Elon Musk's X Holdings, as Fox Business reports.

Recently, TMTG experienced a dramatic rise in its valuation, reaching over $10 billion.

This strategic shift in market positioning is largely attributed to the speculative interest in Donald Trump's potential re-election as president of the United States.

Since late September, TMTG shares have more than quadrupled in value, reflecting growing investor confidence.

TMTG's Stock Performance in Recent Days

On Tuesday, the stock price of TMTG demonstrated continued momentum, increasing by nearly 9% to $34.17 per share. This upward trajectory has been fueled by investor interest in TMTG as a key player in the political media landscape ahead of Election Day.

While the platform's stock previously faced a decline, dropping approximately $12 last month, the recovery has been swift and substantial.

Complicating TMTG’s rise is its recent financial performance, which included reported losses exceeding $16 million for the quarter ending in June.

Despite these financial setbacks, the company managed to generate $837,000 in revenue during the same period. These mixed financial results have not deterred investor enthusiasm, particularly as speculation around the upcoming election increases.

TMTG Versus X Holdings in Market Value

Simultaneously, X Holdings, which was taken private two years ago by Elon Musk, is now valued at approximately $9.4 billion. This estimate was provided by Fidelity, which based the figure on its stake in the company. Despite TMTG’s higher valuation, X remains the larger platform concerning user engagement, indicating that sheer market value does not necessarily reflect user activity levels.

When comparing user traffic, X far outpaces its current competitor. Over the previous month, X reported 706.2 million visits, a stark contrast to the 13.5 million visits recorded by Truth Social. This disparity highlights the difference in user reach and activity between the two platforms, even as TMTG surpasses X in financial valuation.

Musk's Role in Trump’s Campaign

Elon Musk has played a prominent role in Donald Trump's ongoing campaign efforts, particularly after an assassination attempt on the former president that appeared to galvanize support. Over the summer months, Musk aligned himself with Trump, actively participating in the campaign trail by leading rallies and hosting town halls. His influence extends to financial contributions amounting to more than $70 million, underscoring his significant support for the campaign.

Musk's endorsement of Trump has been especially visible in key battleground states, such as Pennsylvania, where he has rallied support and strengthened Trump's political presence. This endorsement may have contributed to growing interest in TMTG and Truth Social, seen as key media outlets in Trump's bid for re-election.

Investment Interests in Truth Social

With a 57% ownership stake in TMTG, Donald Trump has a vested interest in the platform’s success, his share now valued at almost $4 billion. The sharp increase in TMTG's valuation has attracted traders viewing the company as a speculative investment, closely linked to Trump's electoral prospects.

This increased speculation reflects a broader trend among investors seeking opportunities tied to political developments. The intrinsic link between TMTG's market performance and Trump's political career remains a focal point for stakeholders and observers alike.

Future Prospects in Social Media

Given these developments, the future landscape of digital media remains highly dynamic. As Truth Social and TMTG continue to rise in value, market analysts will be keenly observing the interplay between user engagement and platform valuation.

The ongoing competition between TMTG and other major players like X highlights the ever-evolving nature of social media dynamics. Both platforms will likely continue adapting their strategies to maintain relevance and growth in the face of political and market changes.

Ultimately, the valuation battle between TMTG and X is indicative of broader shifts within the media industry. As both entities adapt to the evolving political and economic climate, their ongoing rivalry will be watched closely by investors, users, and industry analysts.