Shares of Trump Media & Technology Group (DJT) rose about 2% in mid-morning trading Monday, after surging 15% on Friday following news that Donald Trump would not sell shares of the company.
Trump made this announcement From his truth social accounts Friday afternoon, keeping approx. Interest 60% From DJT, the parent company of Truth Social.
At current levels of about $32 per share, Trump Media boasts a market capitalization of about $7.1 billion, giving the president-elect a stake worth more than $4.2 billion.
After President Trump won the presidential election over Kamala Harris, the company’s stock price soared, fluctuating between highs and lows.
In September, Trump Media’s stock traded at its lowest level since the company’s debut after a widely publicized lockup period expired. As both domestic and overseas betting markets began to move toward Trump’s victory, stock prices eventually rebounded from their lows.
According to the analysis company S3 PartnerDJT short sellers, or traders who bet on the stock’s price falling, have lost $22.2 million in market capitalization since November 4.
“Despite the increase in short selling of DJT stock ahead of the election, we have been covering shorts since the election, purchasing 1.26 million shares (worth $392 million) since November 4,” said Ihor Dusaniwsky, head of predictive analytics at S3 Partners. . spoke to Yahoo Finance.
“If the rally continues and we get back to recent highs of $51.51, we expect short covering on DJT stock to continue,” Dusaniwsky said. “This could result in a significant portion of the 1.7 million shares we have seen being shorted over the past month ahead of the election.” “It will,” Dusaniwsky said. Added.
Trump founded Truth Social after being kicked off major social media apps like Facebook (META) and Twitter (now X) following the Capitol riots on January 6, 2021. Trump has since been restored to the platform. He officially started posting to X again in mid-August after a gap of about a year.
As Truth Social attempts to dominate traditional social media, questions have long been raised about the company’s fundamentals.
On Tuesday, just hours before election polls closed, DJT was trading lower. Third quarter results This resulted in a net loss of $19.25 million for the quarter ended September 30. This is down from the $26.03 million the company reported in the same period last year.
DJT also reported revenue of $1.01 million, a slight decrease year-over-year compared to the $1.07 million it reported in the third quarter of 2023. In the nine months to September 30, sales were down 23% year-on-year. period.
