The Drain Continues
In its entire history, Trump Media stock (market symbol DJT) has never had eight consecutive down days. It has now. It seems investors are losing faith in this stock. For eight consecutive days, there have been more sellers than buyers. To attract buyers, the sellers must sell their stock at a lower price, so down the price goes. Down, down, down, for eight consecutive days. Down, down, down for more days in a row than has ever happened before.
Why is this? There are three factors. (1) Trump returned to Twitter (X) and he is posting on Tik Tok. Truth Social no longer has the exclusive on Trump posts. (2) The Sept. 20 lockout lift is rapidly approaching, which allows Trump and other insiders to sell a vast quantities of shares that were previously locked up by the merger rules common to a newly issued SPAC stock like this. Trump has said nothing about his intent to sell or not sell. His failure to say he believes in this stock and will not sell is prompting millions of shares to be sold as investors cut their losses ahead of expected further price declines.
No matter how low the share price falls, Trump will receive a huge windfall if he sells his shares, because he got them for free under the terms of the SPAC deal. He and other insiders built all kinds of advantages for themselves in this; which will produce massive profits for them at the expense of the investors they duped into buying this stock after they created it.
Trump has a strong incentive to sell his shares as quickly as he can. The sooner he gets out, the lower his risk of further price declines that are certain to come, because this is a money losing company which, by its own admission in SEC filings, is uncertain of its future viability.
This is not a real company. It's a classic pump and dump scheme, masterfully executed by Trump. The company's intrinsic value is nowhere near the current stock price and it has no products that are meaningfully profitable.
Keep the money coming, MAGA dupes! Show the libs who's boss. Buy Trump stock! Our hero, Donald Trump won't let you down (even though he already has by now posting on platforms other than Truth Social). Fight! Fight! Fight!