Wall Street Stands to Lose Billions as Truth Social Surges, Handed Trump $123 Million Per Day Last Month
One expert says that Vice President Kamala Harris might not be the biggest loser in America if former President Donald Trump wins the presidential election.
Writing in the New York Post, Chares Gasparino used his On the Money column to suggest that investors who have been betting on a nosedive in share prices of Trump Media & Technology Group, the parent company of Truth Social that trades under the initial DJT, could be in for an unpleasant surprise.
In what’s known as short selling, investors make their profit by buying a stock and cashing in when the plummets.
Gasparino said that as of his writing, when DJT’s stock value had increased 200 percent for October, Trump had made more than $3.7 billion last month.
At one point, according to the Associated Press, DJT was worth more than X.
“People who held the stock have been making money. Not so for sophisticated investors known as short sellers who have bet against the stock,” Gasparino wrote, noting that the company has suffered operating losses since it went public.
“The short sellers have been getting hammered, and the worst could be yet to come,” he wrote.
Gasparino said that investing in DJT is driven by emotion, not the bottom line, with many investors being Trump’s MAGA supporters.
“The emotion surrounding Trump’s improving poll numbers is enough to boost the stock by a lot to crush short sellers,” he wrote.
Bob Sloan, the founder of the data analytics firm S3 Partners, indicated a Trump victory Tuesday could send the stock higher.
“The MAGA holders make some money and Trump gets even richer,” Gasparino wrote.
A Trump loss, Gasparino wrote, could mean that short sellers get their financial payday and Trump loses money.
Or maybe not.
Gasparino wrote in another New York Post column that there is a significant buzz over the potential of Truth Social to become part of Elon Musk’s X.
How and when that might happen, he noted, would be sorted out after the presidential campaign ends.
For all that the stock could go wild, it can go down as well in a week where its prices were as volatile as the presidential campaign, as noted by CBS.
After days of increase, on Wednesday and Thursday, shares in Trump Media & Technology Group went down 31 percent, which meant that on paper, Trump’s stake in DJT was worth $1.9 billion less.
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