Trump Media's Call For Short-Selling Probe A 'Diversion Tactic,' Says Herb Greenberg: 'Beware Of What You Wish For'
Portfolio Pulse from Benzinga Neuro
Herb Greenberg, co-founder of Wall Street Beats, criticized Trump Media & Technology Group Corp.'s (NASDAQ:DJT) request for a legislative probe into the short-selling of its shares as a 'diversion tactic.' He compared it to Overstock.com's past issues with short sellers and warned that such actions could lead to rapid declines in stock prices if reality sets in. This criticism comes amid an insider trading trial related to Trump Media and after the company awarded Donald Trump 36 million additional shares, significantly increasing his stake.
May 03, 2024 | 9:41 am
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Trump Media & Technology Group Corp.'s push for a probe into short-selling, amid an insider trading trial and after awarding Donald Trump significant additional shares, has been criticized as a diversion tactic by Herb Greenberg.
The call for a legislative probe into the short-selling of DJT shares, coupled with the ongoing insider trading trial and the significant increase in Donald Trump's stake, could lead to increased scrutiny and volatility in DJT's stock price. Greenberg's comparison to Overstock.com's past issues and warning about potential rapid declines in stock prices if reality sets in suggest a negative short-term impact on DJT's stock.
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