Is Donald Trump's Media Company Worth More Than Elon Musk's X?
Portfolio Pulse from Chris Katje
Trump Media & Technology Group (TMTG) debuted on NASDAQ under the symbol DJT after a SPAC merger, with an initial market cap of $9.6 billion, later adjusting to $7-$8 billion. Comparatively, Elon Musk's X (formerly Twitter) was acquired for $44 billion but is now valued at $14.1 billion by Fidelity. TMTG's valuation is considered high, trading at 2,800 times its annual revenue, while X traded at 8.4x. Investors are cautioned about TMTG's future valuation, and Musk aims to expand X into an 'everything' app.
March 29, 2024 | 7:11 pm
News sentiment analysis
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NEGATIVE IMPACT
Trump Media & Technology Group's market debut saw its valuation fluctuate, initially at $9.6 billion, adjusting to $7-$8 billion, amidst high valuation concerns.
TMTG's high valuation, trading at 2,800 times its annual revenue, coupled with investor caution about its future valuation, suggests a potential short-term price decline. The stock's initial performance and subsequent adjustment indicate market skepticism.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Fidelity Blue Chip Growth Fund, holding shares in X, marked down the valuation of X to $14.1 billion, a significant decrease from its $44 billion acquisition price by Musk.
The markdown in X's valuation by Fidelity and other shareholders reflects a negative outlook on the asset's short-term performance. This adjustment, indicating a 68% discount, suggests skepticism about the asset's current market value and potential for future growth.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80