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Trump Media and Technology Group extended its two-day stock rally to as much as 47% on Thursday.
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The recovery comes after a brutal post-IPO sell-off that dragged shares down more than 60%.
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Trump Media has posted instructions on its website detailing how to prevent retail investors’ shares from shorting.
Shares of Trump Media and Technology Group are experiencing a sharp recovery after a brutal post-IPO decline.
The stock is up as much as 47% over the past two days, recouping some of the 60% losses it has suffered since late March, when Truth Social’s parent company completed its SPAC merger with Digital World Acquisition.
The sharp recovery comes after the stock successfully tested its 200-day move at around $24 on Wednesday. It will be crucial that the stock remains above the rising 200-day moving average, otherwise further technical damage could occur to the stock price.
Trump Media stock closed Thursday at $33.12.
The sharp volatility in Trump Media’s stock has provoked a strong response from its core retail investor base, which is actively posting on the Truth Social website. Emotions turned sour earlier this week when shares were in freefall, but things have been looking up lately.
“Happy Days are back,” Truth Social user @manofpeace123 said Thursday.
Trump Media and Technology Group recently announced plans to launch a streaming service as it aims to compete with major companies like Netflix and Disney+.
But given how expensive it is to start a streaming company, combined with the fact that the company lost $58 million last year on revenue of just $4 million, there are plenty of skeptics.
The stock has a short float of 39.5 million shares, or about 14.8% of Trump Media’s total share float, according to Finviz data.
Regarding short sellers, Trump Media recently made an addition to the FAQ section of its website, explaining how retail investors can avoid having their shares sold short.
“For long-term shareholders who believe in the company’s future, the company highlights the following actions you can take with your brokerage firm to avoid lending out your shares for short selling,” Truth Media said.
Read the original article on Business Insider
