Apr 29, 2024,04:47pm EDT
Trump Media Stock Surges to Three-Week High Amid Anti-Short Selling Campaign—Boosting Trump’s Wealth by $400 Million
Shares of Trump Media and Technology Group, the social media company founded by former President Donald Trump, experienced a significant surge on Monday, fueled by the company’s unconventional strategy against short sellers. The stock, traded under the ticker symbol $DJT, soared by 12%, closing at $47 per share, marking its highest closing since April 3.
The rally followed Trump Media’s latest move to combat short sellers, as the company issued a press release guiding its shareholders on how to prevent their shares from being utilized in such trades. This proactive stance against short selling contributed to the stock’s fourth consecutive trading session of substantial gains, demonstrating the company’s determination to shield itself from potential downward pressure.
Trump’s net worth received a substantial boost of $406 million on Monday, reaching a total of $5.6 billion, according to Forbes’ calculations. His stake in Trump Media, currently valued at $3.7 billion, combined with a bonus payout triggered last week worth $1.7 billion, contributed to this increase. However, regulatory provisions prevent Trump from selling any shares at the moment due to the significant stake he holds in the recently public company.
Notably, Trump Media emphasized in its release that a considerable portion of its shareholder base comprises retail investors who support the company’s mission to combat Big Tech censorship. Despite Trump’s majority ownership, the acknowledgment of shareholders investing based on ideological alignment underscores the company’s unique dynamics.
In a surprising revelation, Trump Media’s market capitalization of $6.4 billion is remarkably close to Reddit’s $7.4 billion valuation, despite significant differences in financial performance and user base. While Reddit boasts substantial revenues and a large user base, Truth Social, Trump Media’s flagship platform, reported comparatively modest figures. Nonetheless, the company’s valuation remains notably high, reflecting investor enthusiasm and the polarizing nature of its mission.
Trump Media’s journey as a publicly traded entity has been eventful, characterized by intense market activity and bold strategic moves. The ongoing campaign against short sellers, spearheaded by CEO Devin Nunes, has sparked controversy and drawn attention to the company’s unconventional approach in the social media landscape.