(PatriotWise.com) — On Monday, shares in Donald Trump’s media company had erased all of their gains since trading first began in late March, NBC News reported.
Trump Media stock fell by 12 percent last Friday, closing the first week of April at $40.59 a share. For the first week of April alone, share prices fell over 32 percent. The stock fell again on Monday, April 8, dropping another 8 percent to $37.17 a share. When trading began on March 26, the stock was valued at over $79 a share.
In the less than two weeks since Trump Media debuted, Trump’s stake in the company has plummeted by more than $2 billion, going from about $5.2 billion to only $2.9 billion.
Analysts say there could be many reasons that the shares in Trump Media & Technology Group have been so volatile. Tuttle Capital Management CEO Matthew Tuttle told CNN that part of the problem could be the Trump name. He said trading is too volatile for retail investors to make long-term purchases.
Currently, much of the trading reflects attempts by investors to bet on whether the stock will continue to fall, according to S3 Partners managing director Ihor Dusaniwsky.
Dusaniwsky told NBC News that while some traders are hoping to gain more from the price continuing to decline, others are hoping to “squeeze” short positions by betting on the share prices to rise again.
NYU School of Law professor Michael Ohlrogge told CNN that the stock’s performance had a 13 percent standard deviation, which is six times the average for companies with similar market valuations.
Ohlrogge said the Trump Media stock seemed “completely untethered to fundamental value.”
Earlier this month, Donald Trump said Truth Social, the platform owned by Trump Media, was “very solid” and called the criticism over its inability to attract a broader audience “lies.”
However, company filings show that Trump Media lost $58.2 million in 2023 and failed to provide any user metrics for Truth Social. The company’s auditor BF Borgers CPA PC issued a notice of “going concern” for the business, saying it had little confidence the company would stay afloat.
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