Shares in Donald Trump’s media technology company fell as much as 12% on Monday, extending the decline, with the value of Trump-run Truth Social now down to $2.9 billion.
After a strong start in late March, Trump Media and Technology Group disclosed multimillion-dollar losses earlier this month and expressed difficulty repaying financial debt. , investors are giving Trump Media and Technology Group a bad reputation.
The company’s stock closed 8.4% lower at $37.17 on Monday, a far cry from its all-time high of $79 when it went public on March 26. It has fallen about 40% so far in April.
The decline reduces the potential profits Trump could sell from his company’s stock to finance his 2024 presidential campaign and legal fees, but a six-month lock-up restriction means he won’t be able to hold on to his shares. You may not be able to sell or borrow stocks.
Mr. Trump owns about 78.75 million shares of the company, but the valuation of his stake has fallen sharply from last month’s value of about $6 billion.
The total market value of Trump Media & Technology Group is currently below that number, at about $5.55 billion.
But the decline is welcome news for short sellers, who have suffered heavy losses on the stock so far this year.
Trump Media & Technology Group has short interest in about 4.75 million shares, or 12% of the stock float, according to analytics firm S3 Partners.
Monday’s decline means those who bet on the stock gained about $16 million between markets, but those who shorted the stock are still down 69% for the year.
“DJT’s recent price weakness has offset the significant financing costs short sellers are incurring, keeping many short sellers in the trade,” said Ihor Dusaniowski, managing director of predictive analytics at S3 Partners. said.
