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Trump Media shares climbed nearly 7% Tuesday, continuing a rise that has seen the Truth Social owner surge about 50% in the past week.
DJT closed the trading day at roughly $50 a share, about 30% below its opening price of $70.90 in late March.
The stock has had several volatile days in the past month, trading at a high of about $60 a share and a low of just over $20 per share.
Trump Media’s rise has come without significant news about its finances improving. The company’s social media business had $58 million in losses last year and just $4.1 million in revenue.
The recent climb in the stock may be the result of steps the company has taken to target short sellers, according to Jay Ritter, a business professor at the University of Florida who is an expert on initial public offerings.
“In the last week or so, the company has informed its shareholders how to make it difficult to loan their shares to short sellers, and it is possible that the number of shares available to short has decreased, increasing the [cost] borrowing rate for short selling,” Ritter said.
The Truth Social owner also has urged Congress to investigate possible “unlawful manipulation” of the stock.
â CNBC’s Dan Mangan contributed to this report.
Source Agencies
