New York, NY – Investors in Trump Media & Technology Group (DJT) have suffered significant losses, with the company’s shares plummeting 43% since reaching a high on March 27. This plunge has wiped out $3.5 billion in wealth, according to data analyzed by Investor’s Business Daily using information from S&P Global Market Intelligence and MarketSurge. In contrast, the S&P 500 has only experienced a 1% decline during the same period, underscoring the stark underperformance of Trump Media & Technology Group.
The sharp decline in the stock price reflects a broader trend of struggle for the company, which has seen shares drop by 25.6% since March 25, following a special purpose acquisition company deal. This challenging environment has set the stage for a fierce battle between bullish investors and short-sellers, with both sides passionately engaged in the stock’s performance amid volatile market conditions.
Notably, major institutional investors have not heavily invested in Trump Media & Technology stock, leaving former President Donald Trump exposed to the majority of the financial losses. As the largest shareholder with a 58.1% stake in the company, Trump has already incurred losses of $2.3 billion from the stock’s highs. Meanwhile, Eric Swider, the former interim CEO and second-largest shareholder, has experienced losses as well, albeit on a smaller scale.
Trump Media & Technology Group’s struggles can be attributed to various factors, including significant financial losses reported by the company and concerns raised by auditors about its ability to sustain operations. Short selling activity has exacerbated the situation, although the high level of insider ownership has made it challenging for short sellers to borrow shares, limiting their ability to profit from the stock’s decline.
The cost of shorting DJT stock remains high, with borrowers paying around $1.10 per day to maintain short positions. Despite these challenges, the stock has not yet shown a significant rebound, leaving investors and market participants closely monitoring its performance in the coming days. As the company continues to grapple with financial pressures and market volatility, the future remains uncertain for Trump Media & Technology Group and its shareholders.