New York, NY – Trump Media, the company behind former President Trump’s Truth Social platform, has raised concerns about potential illegal activity affecting its shares on the Nasdaq stock exchange. CEO Devin Nunes alerted Nasdaq Inc. of suspicions regarding “naked” short selling, where shares are sold without ownership or borrowing, potentially leading to market manipulation. The company’s shares have faced significant volatility since going public following a merger with a blank-check acquisition firm in March.
In a letter to the exchange, Nunes expressed worries over sophisticated market participants profiting at the expense of retail investors through such practices. The allegations have raised questions about the integrity of trading activities involving Trump Media’s shares, leading to increased scrutiny from regulatory authorities. Despite being worth billions, the company has struggled to generate profits and faces cash flow challenges, prompting caution among investors considering trading its stock.
Trump Media reported losses in 2023 amounting to $58 million, highlighting its financial struggles and limited revenue generation. The company’s stock has experienced fluctuations, with a slight uptick following the public release of the letter addressing concerns of market manipulation. The ongoing developments underscore the uncertainties surrounding the company’s financial health and its ability to sustain its current valuation over the long term.
With ongoing developments and regulatory attention, Trump Media’s future performance on the stock market remains uncertain, as stakeholders continue to monitor the company’s financial position and market activities closely. The allegations of illegal trading practices further complicate the company’s efforts to establish credibility and stability in the financial markets. As the story continues to evolve, investors and industry analysts are closely watching for any updates that may impact Trump Media’s trajectory on the Nasdaq exchange.