-
Trump Media and Technology Group extended its two-day stock rebound to as much as 47% on Thursday.
-
The rebound comes after a brutal post-IPO sell-off that dragged shares down more than 60%.
-
Trump Media has posted instructions on its website outlining how to prevent retail investor shares from being shorted.
Shares of Trump Media and Technology Group are experiencing a sharp rebound following a brutal post-IPO decline.
The stock has surged as much as 47% over the past two-days, recouping some of the 60% losses it has suffered since late-March, when the parent company of Truth Social completed its SPAC merger with Digital World Acquisition.
The sharp rebound comes after the stock successfully tested its 200-day moving at about $24 on Wednesday. It will be crucial for the stock to stay above its rising 200-day moving average, or else further technical damage to the stock price could be in store.
Trump Media stock closed at $33.12 on Thursday.
The sharp volatility in Trump Media stock has elicited a strong reaction from its core retail investor base, which actively posts on the Truth Social website. Emotions turned sour earlier this week when the stock was in free-fall, but things have been looking up recently.
“Happy Days are here again” Truth Social user @manofpeace123 said on Thursday.
Trump Media and Technology Group recently announced plans to launch a streaming service, as it seeks to compete with juggernauts like Netflix and Disney+.
But given how expensive it is to launch a streaming business, combined with the fact that the company lost $58 million last year on revenue of just $4 million, there are plenty of skeptics.
The stock has a short float of 39.5 million shares, or about 14.8% of Trump Media’s total share float, according to data from Finviz.
With respect to short sellers, Trump Media made a recent addition to the FAQ section of its website, in which it explained how retail investors can prevent their shares from being sold short.
“For long-term shareholders who believe in the Company’s future, the Company is highlighting the following actions you can take with your brokerage firm to prevent the lending of your shares for short selling,” Truth Media said.
Read the original article on Business Insider