Short sellers appear to be closing in on Trump Media & Technology Group (DJT) stock. Truth Social’s parent company, whose largest shareholder is Donald Trump, has been in a precarious position of late as the 2024 US presidential election approaches. With President Trump’s political future in jeopardy, there is growing short interest in stocks bearing his initials.
What does this mean for the future of DJT stock? Let’s take a closer look at this trend and discuss what investors should expect from the company as the election approaches.
What’s happening with DJT stock?
DJT stock rebounded today, but was unable to maintain its gains and ended the day lower. The stock may have risen this week, but short interest has also been high. The company accounts for about 18% of the stock’s float, according to Fintel data. Additionally, as of this writing, there are no DJT shares available for short sale.
This suggests that short interest in DJT stock is indeed high. Political betting markets may indicate that Trump’s victory is likely, but that doesn’t mean all investors are optimistic about the stock’s long-term growth potential. Earlier this week, the Nasdaq halted trading in DJT due to extreme volatility, and the stock remains vulnerable even as President Trump’s political prospects grow.
For these reasons, DJT is often treated as a meme stock by traders and analysts, writes TipRanks contributor Joel Baglole. Bernard Zambonin recently compared the company to other meme stocks GameStop (GME) and AMC Entertainment (AMC), noting that it’s not even the best bet of the three struggling companies. .
Is it time to sell DJT stock?
Due to the availability of this meme, Wall Street has not issued a rating or price prediction for DJT stock. The company’s future remains uncertain, largely due to the fact that the company is moving in line with President Trump’s political outlook. Even though his content continues to garner maximum attention for Truth Social, the stock price has not been able to show consistent growth.
DJT stock could be attractive to short sellers as the election continues to impact financial markets. The situation is likely to be chaotic as the elections will be close, creating confusion and uncertainty. However, recent trends suggest that short sellers believe DJT will continue to trend lower.
