Former President Donald Trump’s new company, Trump Media & Technology, could be the focus of market tricks, according to CEO Devin Nunes. He wrote a letter to Nasdaq CEO Adena Friedman on Friday about it.
Since becoming public on March 26, the stock, listed as D-J-T on the Nasdaq, has seen big changes. Nunes mentioned that by April 3, 2024, DJT was the priciest U.S. stock to bet against, meaning brokers had a big reason to lend stocks that didn’t exist.
Data suggests that only four market players have made over 60% of the unusual trading volume for DJT shares: Citadel Securities, VIRTU Americas, G1 Execution Services, and Jane Street Capital. Citadel is led by billionaire hedge fund investor Ken Griffin.
Short selling is when an investor makes money if a stock’s value drops by borrowing against its purchase and buying it back at a lower price.
Citadel responded to FOX Business, saying, “Devin Nunes is blaming ‘naked short selling’ for his falling stock price. He’s the type of person Donald Trump would have fired on ‘The Apprentice.’ If he worked for Citadel Securities, we would fire him, as we value ability and integrity.”
Since the IPO, DJT shares have reached as high as $79 each, giving Trump a short-lived paper net worth of over $9 billion. But it’s now down to about $3 billion as of Friday.
The shares have become popular on social media, joining other actively traded stocks like AMC and GameStop. They often see big swings without any specific news.
These stocks are more liked by individual traders rather than big institutions, according to experts.
The company has been making moves since it started. This week, it said it’s starting a livestream service for Truth Social, which is run by the parent company. Also, it might sell more stock, potentially 146 million shares, of which Trump owns over 114 million, according to an SEC filing.
Unlike some other popular stocks, DJT hasn’t made any money yet, according to its IPO prospectus. It lost over $58 million in 2023, as stated in its Annual Report.
These accusations come as Trump is being tried in New York City for payments to former porn star Stormy Daniels. Jury selection is happening now.
