Shares of Trump Media have surged once more, soaring by 50% over the past week
Trump Media’s shares rose nearly 7% on Tuesday, extending a trend that has seen the owner of Truth Social surge approximately 50% over the past week.
Closing the trading day at around $50 per share, the stock remained about 30% below its late March opening price of $70.90. Over the last month, the stock experienced significant volatility, reaching highs of about $60 per share and lows just above $20 per share.
Despite this upward movement, Trump Media’s financial performance hasn’t shown significant improvement. With $58 million in losses and only $4.1 million in revenue last year, the recent stock climb may be attributed to efforts to thwart short sellers, suggests Jay Ritter, a business professor at the University of Florida specializing in initial public offerings.
“In the last week or so, the company has informed its shareholders about methods to make it difficult for them to lend their shares to short sellers. This could have reduced the number of shares available for shorting, thereby increasing the cost of borrowing for short sellers,” Ritter explained.
Additionally, Trump Media has called for a congressional investigation into possible “unlawful manipulation” of its stock.
