Cheering for Trump’s failure has resulted in millions for his stock shorters | Lifestyle

Amateur Wall Street Investors Profit from Betting Against Trump’s Social Media Business

A group of amateur Wall Street investors has found a lucrative opportunity in betting against the stock price of Donald Trump’s social media business, Truth Social. Despite massive buying by Trump loyalists and volatile swings in the stock price, these investors have collectively made tens of millions of dollars over the past month.

Using trading tools like “put” options, these investors are driven by their faith in the poor financial performance of Truth Social rather than personal feelings towards the former president. Elle Stange, an ad executive from Boise, Idaho, commented, “This company makes no money… It makes no sense.” Seattle IT security specialist Jeff Cheung added, “This is guaranteed to go to zero.”

Since Truth Social’s initial public offering a month ago, the stock price has dropped from $66.22 to $41.54. Investors using puts and short selling have already made paper profits of at least $200 million. Despite the early success, amateur traders remain cautious due to the stock’s volatility.

The financial report of Trump Media & Technology, the parent company of Truth Social, reveals significant losses and minimal revenue. The auditor’s report raises doubts about the company’s ability to continue as a going concern.

The investors betting against Trump’s social media business see their actions as a political statement, aiming to slash the value of Trump’s stake in the company. While Trump’s stake is still worth $4 billion, these investors are hopeful that continued pressure on the stock price could hinder his financial resources for legal bills and future political campaigns.

As the battle between bullish Trump supporters and bearish investors continues, the future of Truth Social’s stock remains uncertain. The unique characteristics of the stock, including high borrowing fees and a small float, add to the complexity of the situation. Despite the risks involved, these amateur traders are determined to capitalize on their bets against Trump’s business ventures.