Trump Media and Technology Group is seeing a strong recovery in its stock prices after a significant decline following its initial public offering.
The stock has experienced a remarkable surge of up to 47% in just two days, recovering a portion of the significant 60% losses it had endured since late-March. This decline occurred following the completion of the SPAC merger between Truth Social’s parent company and Digital World Acquisition.
After successfully testing its 200-day moving average at around $24 on Wednesday, the stock has experienced a sharp rebound. It is essential for the stock to maintain its position above the rising 200-day moving average to avoid any potential technical damage to its price.
The stock of Trump Media concluded the trading day on Thursday at $33.12.
The core retail investors of Trump Media stock have been highly responsive to the sharp volatility, expressing their emotions on the Truth Social website. Earlier this week, when the stock experienced a significant decline, sentiments turned negative. However, there has been a positive turnaround in recent times.
“Happy Days are here again,” expressed Truth Social user @manofpeace123 on Thursday.
Trump Media and Technology Group has made an exciting announcement about its upcoming venture into the world of streaming services. In a bid to take on industry giants such as Netflix and Disney+, the company has revealed its plans to launch its own streaming platform. This move signifies Trump Media and Technology Group’s determination to establish a strong presence in the highly competitive streaming market.
However, many skeptics remain due to the high cost of launching a streaming business and the significant financial loss the company experienced last year. Despite generating only $4 million in revenue, the company reported a loss of $58 million.
According to data from Finviz, Trump Media’s stock has a short float of 39.5 million shares, accounting for approximately 14.8% of its total share float.
Trump Media has recently updated the FAQ section on its website to provide guidance on how retail investors can safeguard their shares from being sold short.
Truth Media is urging long-term shareholders who have faith in the company’s future to take certain actions with their brokerage firms in order to prevent the lending of their shares for short selling.
