'It will be volatile, and its volatility will be a function of Trump’s behaviour and prospects at least as much as its fundamentals,' said Usha Rodrigues, a professor of corporate law at the University of Georgia School of Law.
Betting against former president Donald Trump’s social media startup is one of the most difficult and expensive short trades in the market, according to financial analytics firm S3 Partners.
But so far, it’s been a losing bet. Tuesday’s surge alone has cost short sellers some $61 million on paper, bringing mark-to-market losses to $158 million this year for the investors who piled in to bet against the blank-check vehicle that took Trump Media public, according to S3. Meme stock run The stock jumped as much as 59% in Tuesday’s debut on the Nasdaq after the deal to take the unprofitable company behind Truth Social public capped an eye-popping meme stock run, and provided a paper windfall for Trump as he faces a mounting series of legal and financial woes.
“I would not go near it,” said Anne Stevenson-Yang, co-founder and research director of short seller J Capital Research. “This is a crazy meme stock that’s pumped by Trump fanboys.” ADVERTISEMENT CONTINUE READING BELOW Trump is tangled in a web of legal troubles that could result in a series of damaging trials and judicial rulings on top of massive damage awards as he campaigns for the White House.