Betting on Trump’s Truth Social to fail has made millions for stock market short-sellers

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Investors say their bearish gambles are driven less by their personal feelings about the former president than by their enduring faith in the woeful underlying financials of the company.

By Bernard Condon, Associated PressManny Marotta points to his laptop while examining the stock chart for Trump Media and Technology Group, Wednesday, April 24, 2024, in Cleveland. Amateur traders, mostly risking no more than a few thousand dollars each, say the stock is too volatile to declare victory yet.

“I don’t know which direction the stock is going,” says Schenectady, N.Y., day trader Richard Persaud while checking his iPhone amid the surge. “It’s so unbelievably overvalued.” The losses are so big, as Trump Media’s auditor wrote in the report, they “raise substantial doubt about its ability to continue as a going concern.”Amateur trader Manny Marotta holds his laptop in his apartment in Rocky River, Ohio, Wednesday, April 24, 2024. The legal writer from suburban Cleveland had been up about $4,000 on “put” options for Trump Media & Technology stock, purchased over the past few weeks.

Add in massive buying by Trump supporters who see it as a way to support their candidate, and losses could multiply fast.

 

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