Former President Donald Trump has seen a significant decline in his net worth, losing approximately $1.9 billion due to a steep drop in Trump Media & Technology Group Corp DJT stock.
What Happened: According to Benzinga Pro, DJT shares fell by 11.72%, closing at $35.34 on Thursday. This followed a 22% decline on Wednesday after the stock had reached an intraday high of $54.68 on Tuesday. The reasons for the two-day sell-off remain unclear, but the stock has attracted the attention of speculators and shortsellers.
S3 Partners, a research group, indicated that the surge in DJT shares during October might have been driven by short sellers covering their positions, resulting in a short squeeze. They noted the stock’s high squeeze risk due to limited float and significant short interest, which is closely linked to Trump’s election prospects, CBS News reported on Thursday.
Trump, the largest shareholder with around 115 million shares in Trump Media, saw his stake’s value drop from nearly $6.3 billion at Tuesday’s peak to about $4 billion based on Thursday’s closing price.
Trump Media and his company are yet to respond to Benzinga’s queries.
Why It Matters: The volatility in DJT stock is not new, as it has been highly unpredictable since going public following a SPAC merger. The stock’s movements are closely tied to Trump’s 2024 election prospects, with potential outcomes significantly impacting its value. According to a report from S3 Partners, a Trump victory could push the stock to $60, while a loss might render shares “worthless.”
Earlier this week, DJT stock experienced multiple volatility halts as prices fluctuated significantly. The stock was halted several times on Tuesday, reflecting its unpredictable nature and the market’s sensitivity to political developments.
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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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