New York (CNN) — Trump Media & Technology Group is losing money, generating very little revenue and its main product Truth Social remains a relatively small player in social media.
And yet Wall Street is valuing former President Donald Trump’s social media company at nearly $8 billion, a price tag that has tripled in the span of just five weeks.
Since plunging to record lows on September 23, Trump Media’s share price has skyrocketed. Market veterans say this monster comeback is being almost entirely driven by bets that Trump will win the White House.
Trump Media is not a normal stock. It’s basically a meme stock, meaning that it trades not on fundamentals but on hype and momentum linked to the Republican nominee’s political fortunes. The stock is essentially a proxy for how traders think the election will turn out.
“I’ve never seen anything quite like this. This company’s value is almost entirely based on the outcome of an …