November 4, 2024
In a recent column for the New York Post, financial analyst Charles Gasparino shed light on the unexpected fortunes surrounding Trump Media & Technology Group (TMTG), the parent company of Truth Social. With former President Donald Trump running for re-election, TMTG’s stock, traded under the ticker DJT, has seen wild fluctuations and drawn both avid supporters and skeptical investors into the fray.
Gasparino noted that Trump’s media venture has achieved a staggering 200 percent stock increase throughout October, which has reportedly earned Trump over $3.7 billion in paper gains. While supporters view this as an endorsement of Trump’s increasing popularity and his presence in the upcoming election, a particular group of investors—short sellers—have been banking on the opposite.
Short selling is a strategy where investors essentially bet against a stock’s performance, profiting when its value drops. But for those betting against DJT, the rapid ascent has been financially painful. “The short sellers have been getting hammered, and the worst could be yet to come,” Gasparino wrote, emphasizing the volatility and emotionally charged atmosphere surrounding DJT stock.
DJT’s surge, Gasparino explained, is largely driven by the enthusiastic support of Trump’s base. “The emotion surrounding Trump’s improving poll numbers is enough to boost the stock by a lot to crush short sellers,” he wrote. Bob Sloan, founder of data analytics firm S3 Partners, suggested that a Trump victory could drive DJT even higher, benefiting Trump loyalists financially and potentially inflating Trump’s wealth even further. “The MAGA holders make some money, and Trump gets even richer,” Gasparino observed.
Conversely, should Trump lose, the short sellers could finally see a payout. A post-election downturn could hand them the financial success they have been banking on as the current wave of optimism fades.
In a separate New York Post column, Gasparino hinted at another potential twist for Truth Social: a merger or partnership with Elon Musk’s X. Although specifics are speculative, such a collaboration could fundamentally reshape both platforms. Gasparino noted that any developments on this front would likely be discussed in earnest following the election.
Yet, as CBS noted this week, DJT’s performance remains highly erratic. On Wednesday and Thursday, after several days of record highs, TMTG shares plummeted by 31 percent, wiping out nearly $1.9 billion in Trump’s stake on paper. This decline underscores the volatile nature of TMTG, leaving investors on edge as Election Day approaches.
The future of TMTG’s stock remains uncertain, but for now, Trump’s rising campaign profile has boosted DJT and kept the short sellers on their toes. Whether they see the results they hope for may depend as much on political outcomes as market forces.
Sources
- Gasparino, Charles. New York Post, October 2024.
- Associated Press, “Trump Media Surges Amid Campaign Gains,” October 2024.
- CBS News, “Trump Media & Technology Group’s Wild Stock Ride,” November 2024.
