The price of Trump Media shares plummeted nearly 20% for the week, with DJT shares dropping over 8% in the first hour of trading on Friday. Despite a slight gain by the end of the day, shares closed at $32.59, an increase of only around 0.5%. This closing price was significantly lower than the initial price of more than $38 when the social media company began public trading on March 26, resulting in a 47.4% drop in April and a loss of billions in market capitalization.
Former President Donald Trump, the biggest shareholder in Trump Media, is facing a criminal trial related to falsifying business records involving a hush money payment. The company’s market cap has fallen sharply from a high of $9.5 billion to $4.45 billion, leaving short sellers keenly interested in the stock. With limited shares available for borrowing, the high financing costs have only recently begun to fall, providing a potential opportunity for traders looking to capitalize on further declines in Trump Media’s stock price.
