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 election,” Gene Munster, managing partner and co-founder of venture capital firm Deepwater Asset Management, told CNN in a phone interview.

‘A binary outcome’

Munster said there is “nothing” about Trump Media’s fundamentals that can justify its nearly $8 billion market value.

The company’s second-quarter revenue amounted to just $837,000, a tiny amount normally associated with a company valued in the millions, not billions, of dollars.

And yet Trump Media’s share price has surged more than 200% since September 23.

“It sounds crazy but that move, to me, is justified because it’s a binary outcome,” Munster said. “It’s pretty straightforward: If Trump wins the election, it’s going to be worth more than the $8 billion it’s currently worth. And if he loses, it will be worth significantly less.”

Trump is the dominant shareholder in the company that bears his name. His stake of 114.75 million shares is now worth about $4.5 billion, up from $1.4 billion on September 23.

The fact that Trump has pledged not to sell his shares — and that he has not disclosed any stock sales — has helped boost the share price.

‘Crazy’ valuation

George Kailas, CEO of Prospero.ai, a research platform that helps retail traders get better market intelligence, told CNN that Trump Media is trading like a classic meme stock.

“Social sentiment takes off, hitting a fever pitch, raising the value of the stock and then people keep betting on it more and more,” Kailas said.

But Kailas said the massive rally in Trump Media means it is now trading at more than 1,600 times its enterprise value (a measure of a company’s total value, including debt and cash). He described that valuation ratio as “crazy,” noting that other hot stocks are trading at just a fraction of that.