And many traders are betting that the stock price will continue to fall further.

And many traders are betting that the stock price will continue to fall further.

Shares of Trump Media have erased all their gains since they began trading under the ticker DJT last month.

The stock closed down more than 8% Monday at $37.17 after falling about 11% earlier in the day. It had traded above $79 a share on March 26, the day of its debut.

But experts say it’s hard to draw any firm conclusions about what the stock price’s movement means. That’s because so many available shares — about 12%, one of the highest ratios of any active stock listing — reflect traders’ bets that the stock will fall, said Ihor Dusaniwsky, managing director at S3 Partners, a data and predictive analytics company.

This is called short-selling.

  • Omega@lemmy.world
    4·
    7 months ago

    Whoever actually owns the stock and whoever you sold it to both benefit from the stock increase. Basically, everyone wins except the one shorting.

    • Flying Squid@lemmy.world
      52·
      7 months ago

      In other words, that would end up generating money for Trump himself.

      Which sounds like a good enough reason not to make that gamble.

      • Beemo Dinosaurierfuß@feddit.de
        2·
        7 months ago

        Well the stock rising does generate money for Trump no matter if anyone shortsells it.

        If you shortsell, you position yourself against the stock.
        If it rises Trump wins and you lose.
        If it falls Trump loses and you win.

        But neither way is it you shorting the stock that makes Trump win.
        He wins if the company represented by the stock actually grows in value and the stock price rises or if idiots buy his stocks and make the price go up. But I predict that after a brief rush on the stock by his gullible idiots in the beginning noone will want to buy his stock anymore.
        That’s why I would consider shorting it, because I predict the stock to keep falling.
        This I predict because I think the company that is represented by the stock is shit and basically worthless, which the stockprice should represent in due time.

        A shortseller thus wants to profit off of Trumps losses.