Trump Media stock has erased all of its gains since it began trading under the ticker DJT last month.
As of Monday afternoon, the stock was trading at about $36, down from its March 27 high of $66.
But experts say it’s difficult to draw firm conclusions about what the stock price movements mean. According to Ihor Dusaniowski, managing director at data and predictive analytics firm S3 Partners, this means that a very large number of available shares (about 12%, one of the highest percentages of any active stock listing) is This is because it reflects traders’ expectations that the market price will decline.
This is called short selling.
Currently, much of the trading activity surrounding the stock reflects investors’ attempts to bet on whether the stock will continue to fall, Dusaniwski said in an email.
Some traders are looking to further profit from continued price declines, while others may be looking to “squeeze” their short positions by betting that something will cause the stock price to rise. yeah.
“This is like a shootout at the OK Corral, with both sides waiting for the other to act first,” Dusaniwski said.
As the stock price fluctuated, the net worth of former President Donald Trump, who owns a majority of the company’s shares, also fluctuated, dropping from a high of about $5.2 billion to about $2.9 billion.
But these numbers matter little to Trump because he is contractually barred from selling his stock holdings or even borrowing money for six months.
In a post on Truth Social earlier this month, President Trump called the company’s business “very solid” and called criticism of the company’s ability to reach a wide audience “lies.”
But according to company filings, Trump Media Lost $58.2 million last year User metrics did not report anything.
Meanwhile, the company’s auditors said they were not confident that the business could survive and issued a “going concern” notice to the business.
Its auditor, BF Borgers CPA PC, has itself been the subject of a recent report on its effectiveness. For example, it is prohibited in Canada.
CEO Devin Nunes, a former U.S. congressman, said in a news release last week that he is confident in the future of the business.
“We are excited to operate as a publicly traded company and have access to the capital markets,” Nunes said in a statement. “Following the closing of the 2023 financials related to the merger, Truth Social is now , is debt-free and has assets of more than $200 million.” This opens up many possibilities to extend and enhance our platform. ”
“We intend to take full advantage of these opportunities to make Truth Social the quintessential free speech platform for the American people,” Nunes said.
