The Nasdaq imposed multiple trading halts on Trump Media & Technology Group (DJT) today as DJT stock surged on election momentum. Being closely linked to Donald Trump, it has been subject to extreme volatility, which Nasdaq cites as the reason for the trading halts. The most recent halt has been lifted, though, and although DJT plunged this afternoon, it has not recovered.
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What’s Happening with DJT Stock?
After a strong start to the day, DJT finished in the red amid extremely high trading volume. Shares closed out the day down 1% and are currently down 4% in after-hours trading. This brings the stock down 21% for the week, further erasing the gains that DJT enjoyed throughout most of October.
With the U.S. Presidential Election taking place today, it makes sense that DJT stock would be subject to extreme volatility. Regulators will sometimes impose a trading halt to protect investors when such a scenario is taking place. That’s likely what prompted today’s trading halts, especially given the high trading volume that DJT stock experienced, reaching 113.85 million against an average volume of 28.65 million.
These declines also suggest that the market does not have faith in Trump’s chances of winning the election. As Tipranks reported, short interest in DJT stock has been rising as investors increase their bets against it. Short interest now accounts for more than 20% of its float, up from 18% last week. Part of this heavy trading could have been from investors betting that DJT will fall further if Trump is defeated.
Is DJT Stock a Buy, Sell, or Hold?
Since Wall Street analysts don’t follow DJT stock, there are no current ratings on it. However, this type of high volatility likely is not encouraging investor confidence, as regulators typically only impose trading halts on troubled companies. While some have speculated that DJT is destined for a short squeeze, today’s decline indicates that any chances of that happening have substantially decreased.
The election result likely will not be finalized tomorrow, as counting all the votes from certain states can take time. If that’s the case, trading will likely be highly volatile then and Nasdaq may decide that another trading halt is necessary.
