Jonathan Raa | Photo only | Getty Images
Trump media Shares rose 5% on Tuesday, continuing a rise that has seen the Truth Social owner rise about 50% over the past week.
DJT was trading at about $50 per share, about 30% below its opening price of $70.90 in late March.
The stock has had several volatile days over the last month, trading at a high of about $60 per share and a low of just over $20 per share.
Trump Media’s rise came without any significant news of improving its finances. The company’s social media business posted losses of $58 million and revenue of just $4.1 million last year.
More news about Donald Trump
According to Jay Ritter, an economics professor at the University of Florida and an expert in initial public offerings, the stock’s recent rise could be the result of moves the company has taken to target short sellers.
“Over the last week or so, the company has informed its shareholders about how it may make it more difficult for short sellers to lend their shares, and it is possible that the number of shares available for short selling has decreased, thereby increasing the number of shares [cost] Lower the target interest rate for short sales,” said Ritter.
Truth Social’s owner has also called on Congress to investigate possible “unlawful manipulation” of the stock.
—CNBC’s Dan Mangan contributed to this report.
Source link
2024-04-30 18:21:41
www.cnbc.com
