Trump's Stock Loss Means Millions For Short Sellers: 'A Lot Of His Businesses Go Belly Up, Quickly'
Portfolio Pulse from Chris Katje
Trump Media & Technology Group (NASDAQ:DJT), after its SPAC merger with Digital World Acquisition Corporation, has seen its stock fluctuate significantly. Short sellers and investors buying put options have reportedly made $200 million in paper profits as the stock declined from its peak. Despite a high cost to borrow and a significant portion of the float being shorted, the stock has recently gained, partly due to news on short selling and Trump's ongoing legal issues. Trump owns a majority in the company, which complicates potential stock sales and short selling strategies.
April 26, 2024 | 6:34 pm
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NEUTRAL IMPACT
Trump Media & Technology Group's stock has been volatile, with short sellers profiting from its decline. Despite challenges, the stock has seen recent gains, influenced by news on short selling and Trump's legal issues.
The stock's volatility and the significant interest from short sellers suggest a mixed short-term outlook. While the recent gains indicate some positive momentum, the high short interest and Trump's legal issues could continue to drive volatility. The company's warning about potential stock manipulation and the lock-up agreement preventing Trump from selling shares add layers of complexity to its short-term performance.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100