Short interest in Trump Media climbs after recent rally, S3 Partners says
FILE PHOTO: A man looks at a screen that displays trading information about shares of Truth Social and Trump Media & Technology Group, outside the Nasdaq Market site in New York City, U.S., March 26, 2024. REUTERS/Brendan McDermid/File Photo
Jan 2 : Short interest in U.S. President Donald Trump's social media company has jumped following a recent merger announcement, suggesting some traders expect the stock to give back more of its recent gains, according to financial data firm S3 Partners.
Shares of money-losing Trump Media & Technology Group are up over 30 per cent since December 18, when it announced a $6 billion merger with Google-backed TAE Technologies. The stock had jumped as much as 63 per cent in the two days following the announcement.
Since the merger announcement, short interest in Trump Media shares has climbed 31 per cent to nearly 16 million shares, around the highest level since October, S3 Partners said in a report on Friday. With the stock adding 4 per cent on Friday to $13.77, that short interest represents bets worth about $218 million that the company's shares will decline.
Trump Media's all-stock deal is an ambitious bet on the power boom spurred by artificial intelligence data centers and adds to the Trump family's growing roster of diverse ventures, from cryptocurrency to real estate holdings and mobile services.
Trump has 115 million shares in Trump Media, roughly 40 per cent of the company. His stake in the merged company would be roughly 20 per cent.
Shares of Trump Media have lost almost 60 per cent over the past 12 months.
