Trump Media & Technology Group stock (DJT) saw a significant surge of over 25% on Thursday as the company made efforts to combat short sellers amidst a tumultuous trading week. The company, which recently went public on the Nasdaq after merging with Digital World Acquisition Corp., has been facing increased short interest in its stock.
According to the latest data from S3 Partners, short interest in DJT stock currently stands at about 13% of outstanding shares, up from 11% at the time of its public market debut. This is significantly higher than the average short interest in public companies, which typically ranges from 3% to 4%.
In response to the growing short interest, Trump Media updated its FAQ page on its website and advised investors on ways to prevent their shares from being loaned for short-selling purposes. The company recommended contacting their brokerage to place restrictions on the lending of shares to short sellers, opting out of securities lending programs, and holding shares in a cash account at a brokerage firm or transferring them to a bank for a retirement account.
The surge in DJT stock comes after a recent decline of about 55% since the end of March. The company also faced challenges earlier in the week when it filed to issue more than 21 million shares and announced a new live TV streaming platform.
Former President Donald Trump, who maintains a majority stake in Truth Social, the social media platform he founded after being banned from major social media apps, has seen the value of his stake fluctuate with the performance of Trump Media stock. Despite the recent increase in stock price, Trump Media reported sales of just over $4 million and net losses of nearly $60 million for the full year ending Dec. 31.
As Trump faces legal challenges, including a $454 million fraud penalty and a campaign fundraising shortfall ahead of a potential 2024 election rematch against President Biden, the future of Trump Media remains uncertain. Investors will be closely watching how the company navigates the volatile market and addresses its profitability challenges in the coming months.
