Trump Media and Technology Group, the parent company of Donald Trump's Truth Social platform, has been on a crusade against short-sellers, coinciding with a significant rally in its stock price. The company recently issued messages to its shareholders on how to combat short-sellers, leading to a surge in its stock price.
In a press release, Trump Media clarified that shareholders have the option to recall their shares from brokerage firms to prevent them from being loaned out for short selling. This move has been well-received by retail investors, with the stock soaring 12% on Monday and an additional 9% on Tuesday. Overall, the stock is up 92% since the company's message about combatting short-sellers was posted on its website.
The surge in Trump Media's stock price has put pressure on short-sellers, as fewer shares are available for loaning out for short-interest positions. This could potentially lead to a short squeeze if the stock does not quickly trend lower.
Despite its recent success in combating short-sellers, Trump Media has attracted a significant amount of short interest since going public last month. This is primarily due to the company's financials, which show $58 million in losses on just $4 million in revenue last year. With a valuation of over $6 billion, many investors believe that the stock is overvalued.
Recent short-interest data indicates that nearly 6 million shares of Trump Media are sold short, accounting for about 8% of the company's share float. The ongoing battle between the company and short-sellers will be one to watch as the stock continues to fluctuate in response to these dynamics.