Trump Media’s Debut on Nasdaq: A Tale of Financial Struggles and Alleged Illegal Activity
On March 26, 2024, pedestrians strolled past the Nasdaq building in New York. The building was once home to Digital World but is now owned by Trump Media, the parent company of Truth Social. On that same day, Trump Media made its debut on the Nasdaq stock exchange.
However, things took a turn when the company accused illegal activity of causing a decrease in the price of its shares and alerted Nasdaq Inc. Devin Nunes, CEO of Trump Media, sent a letter to the exchange outlining what he believes to be “naked” short selling. This involves selling shares that are not owned or borrowed, which is generally considered illegal. Nunes also mentioned that the company’s shares were listed as unlawful trading activity by Nasdaq.
Trump Media’s majority-owner, former President Donald Trump, has seen his shares drop by about 50% from their all-time high on March 26 after a merger with a blank-check acquisition company to go public. Despite being worth billions of dollars, Trump Media is facing financial struggles and needs cash. Experts advise investors to be cautious when trading the stock due to its lack of fundamentals backing its high valuation. In 2023, Trump Media reported a loss of $58 million and revenue of just $4.1 million.
Following the release of Nunes’ letter, shares saw a slight increase on Friday. However, both Nasdaq and Trump Media have yet to respond to requests for comment on this issue. The story continues to evolve with new developments and context emerging daily.
In summary: Devin Nunes sent a letter accusing “naked” short selling at Trump Media following their debut on Nasdaq stock exchange where they were listed as unlawful trading activity by Nasdaq due to their decrease in share price after merger with blank-check acquisition company leading financial struggles despite being worth billions of dollars and need cash injection from investors while experts advise caution when trading stock due to lack of fundamentals backing high valuation with slight increase in share price seen after letter release but without response from both exchanges yet as story continually evolves with new developments and context emerging daily
