Former President Donald Trump's Trump Media & Technology Group (NASDAQ:DJT) stock has had a turbulent first month on the markets, described as “abnormally volatile” by a financial expert.
What Happened: The stock of Trump Media, the company behind the social media platform Truth Social of former President Trump, has been highly unstable since its debut on the Nasdaq on March 26.
The stock, under the ticker DJT, experienced significant fluctuations in its first month, with its price reaching as high as $79.38 on the first trading day.
However, the stock took a nosedive a week later following the revelation of substantial operational losses in 2023, the planned resale of most of its outstanding securities, and the announcement of its live TV streaming platform.
"It's been abnormally volatile — as volatile as any stock I can ever recall being," said Morningstar's vice president of research, John Rekenthaler, reported Quartz.
This rollercoaster ride can be attributed to the significant influence of retail investors, who often trade based on sentiment rather than business performance.
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Trump Media CEO Devin Nunes has alleged that the company’s stock is being illegally traded through a practice known as “naked” short-selling. Despite the company’s plans to launch a live TV streaming platform linked to Truth Social, the stock continued to plummet.
Why It Matters: Short-sellers have reportedly made millions of dollars from the newly public stock, with Nunes urging House GOP leaders to investigate potential stock manipulation and anomalous trading.
The accounting firm contracted by Trump Media was found to have used 14 different versions of the auditor’s name in regulatory filings, raising concerns about the company’s financial oversight.
Price Action: Trump Media stock rose 7.92% to close at $41.54 on Friday, according to Benzinga Pro.
Read Next: Trump’s Stock Loss Means Millions For Short Sellers: ‘A Lot Of His Businesses Go Belly Up, Quickly’
Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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