Shares of former President Trump’s social media company have surged over the past two trading sessions, after falling for several weeks.
Joe Raedle/Getty Images
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Joe Raedle/Getty Images
Shares of former President Trump’s social media company have surged over the past two trading sessions, after falling for several weeks.
Joe Raedle/Getty Images
Shares of Trump Media & Technology Group jumped 26% on Thursday, marking a second straight day of strong gains.
The rally over the past two days marks a rare respite for the company behind the Truth Social app, which trades under the ticker symbol DJT. The stock ended up more than 15% on Wednesday.
Trump Media shares are still down sharply since their spectacular stock market debut in late March. The declines wiped out billions of dollars in value, including for former President Trump.
Nonetheless, the stock rally over the past two days was welcomed by Truth Social members who identified themselves as small shareholders.
“In a few years, I’ll be really rich or really broke. I choose to believe that free speech and the truth will win out in the end,” @snowblazer said Wednesday afternoon. “I have no plans to sell anytime soon. It’s been a painful roller coaster but my conviction is still strong!!”
Experts warn against the title
The company also provided instructions to smaller shareholders on Wednesday on how to make it more difficult to short Trump Media shares.
Short selling occurs when investors bet that a stock will fall, and many small shareholders have blamed such bets for the company’s poor performance since its stock market debut.
Despite the latest stock market gains, professional investors have warned that the outlook is not good for Trump Media, endangering some of the smaller investors who hold the shares.
“It’s only a matter of time before they become disillusioned,” says Julian Klymochko, CEO of Accelerate Financial Technologies.
Trump Media recently announced that it would issue additional shares. The company also announced it would launch live video streaming, which investors see as a risky and expensive bet.
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