Trump Media's Stock Takes A Dramatic Nosedive, Erasing All Gains Since Public Debut

Shares of Trump Media & Technology Group Corp DJT have taken a nosedive, wiping out all gains since the company’s public debut. The stock’s value dropped by an additional 11% on Monday, leaving investors and market analysts scratching their heads.

What Happened: Trump Media’s stock, traded under the ticker DJT, was valued at approximately $36 on Monday afternoon, a significant drop from its high of $66 on Mar. 27, reported NBC News.

Ihor Dusaniwsky, managing director at S3 Partners, suggests that a large part of the trading activity is due to investors positioning bets on whether the stock will continue to plummet, a practice known as short-selling.

See Also: ‘We’re F’d,’ Says ‘Rich Dad Poor Dad’ Author Robert Kiyosaki Because Fed Chair Powell ‘Finally Admitted I

Former President Donald Trump, the company’s majority shareholder, has experienced fluctuations in his net worth that align with the stock’s price. However, he is legally prohibited from selling or borrowing against his shares for a period of six months.

Despite the company’s losses of $58.2 million last year and a “going concern” notice from its auditor, CEO Devin Nunes remains optimistic about the company’s future, emphasizing that Truth Social has no debt and over $200 million in the bank.

Price Action: As of writing this article, DJT is trading at $37.17, down 8.43% in the last 24 hours. Earlier on Monday at 10:00 AM, the stock had dropped to $35.82. After-hours trading saw a slight increase to $37.26, up 0.24%. The stock is up by a remarkable 113.01% year-to-date, according to data from Benzinga Pro.

Why It Matters: The recent stock plunge follows a series of events that have put Trump Media under the spotlight. On Apr. 4, Democratic groups demanded a congressional investigation into Trump Media following allegations that the company relied on emergency loans linked to a Russian-American businessman under federal investigation for its stock market debut.

This was followed by a judge rejecting Donald Trump’s challenge to a Georgia 2020 election case on free speech grounds.

Recently, JJ Kinahan, CEO of IG North America and president of tastytrade suggested that Trump’s fans might treat buying DJT stock as a 2024 campaign contribution, while CEO Nunes defended the company’s financial position amid criticism, stating that the company is ‘well-positioned‘ financially.

Read Next: Detection Of Cannabis In Bodily Fluids Not Correlated With Driving Impairment, New Review Shows

Image Via Shutterstock