Bets against Trump Media and Technology Group (DJT) are increasing, as evidenced by the fact that there are currently no shares of DJT stock available to short. Data from Fintel shows that short interest in the stock is increasing as shares trend downward. This trend is likely being driven by uncertainty surrounding the fast-approaching U.S. Presidential election, upon which the company’s future hinges.
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Does this mean that DJT is likely to keep falling as short sellers close in on the troubled company? Let’s take a closer look at the data and assess what investors should be expecting.
What’s Going On With DJT Stock?
After rallying to impressive heights earlier this month, DJT stock appears to have run out of steam. As of this writing, it is down 12% for the day and isn’t showing signs of a rebound. As TipRanks’ Joel Baglole reports, shares fell 20% yesterday on increasing election uncertainty. DJT is currently down 18% during the past five days, and this trend could easily continue through election day.
Short sellers are clearly seizing the opportunity to profit as the unstable stock careens toward an uncertain future. Fintel shows that there are currently zero shares of DJT available to short, indicating that bets against the stock have increased recently. The share count has fluctuated recently, but it has been low since yesterday, falling to zero multiple times in the past 24 hours.
Even if Trump does win the election, that doesn’t mean that DJT stock will sustain any real momentum. TipRanks reporter Casey Dylan recently assessed it, stating, “On the theory that the company could become extremely valuable if Trump secures a win, it’s worth noting that this surge in value could experience a drastic fall post-election regardless of the outcome.”
Is It Time to Short DJT Stock?
On top of the consistently low shares available to short, short interest still accounts for 18% of DJT stock’s float, and short sellers require 0.13 days to cover their positions. All three metrics show an active interest from short sellers. The bears have been closing in on the troubled stocks for weeks, even while shares were rising. But now that DJT has reversed course, it makes sense that short sellers would be increasing their bets pre-election.
Wall Street analysts have never taken DJT stock seriously, regarding it as the meme stock and a highly speculative play on its best day. Now, it seems that short sellers are primed to profit as the stock falls, regardless of how the election plays out for Trump.
