DJT stock extends double-digit plunge after worst day yet for Donald Trump's company

[mahatmakanejeeves]

Source: Yahoo! Finance

Yahoo Finance
DJT stock extends double-digit plunge after worst day yet for Donald Trump's company

Alexandra Canal · Senior Reporter
Thu, October 31, 2024 at 11:29 AM EDT 3 min read

Trump Media & Technology Group stock (DJT) extended its double-digit declines on Thursday as the stock reversed sizable gains from earlier in the week. Shares fell around 15%, and trading was briefly halted due to volatility.

The massive swings come as the stock suffered its largest percent decline on Wednesday after shares plunged around 22%. Since Tuesday, more than $3 billion has been shaved from the company's market cap, although the stock is still up roughly 130% from its September lows.

The oscillating of shares between highs and lows will likely continue as the election nears. One current investor warned that if Trump loses the election next week, shares of DJT could plunge to $0.

"It's a binary bet on the election," Matthew Tuttle, CEO of investment fund Tuttle Capital Management, told Yahoo Finance's Catalysts show on Monday. ... Tuttle, who currently owns put options on the stock, said the trajectory of shares hinges on "a buy the rumor, sell the fact" trading strategy. ... "I would imagine that the day after him winning, you'd see this come down," he surmised. "If he loses, I think it goes to zero."

{snip}

Read more: https://finance.yahoo.com/news/djt-stock-extends-double-digit-plunge-after-worst-day-yet-for-donald-trumps-company-152953611.html

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Full disclosure: I do not own any DJT. I have never taken any position in DJT.

This is not a solicitation to buy or sell shares of DJT.

The people who bought DJT at $12.15 near the close on September 23 are still way ahead.

[hlthe2b]

1. This may not be my area of expertise (at all), but it is not hard to see the manipulation of this stock. SEC?

Even I know this very likely violates Federal Securities laws... Where art thou, SEC?

[TwilightZone]

3. I'm sure the SEC is quite aware of DJT.

This isn't happening in a vacuum.

[hlthe2b]

5. That is not in question, but rather are they investigating, acting or ignoring?

[TwilightZone]

8. It's their job to regulate and ensure compliance.

What reason would they have to simply ignore it? Trump has no power over the SEC.

The appearance of impropriety is not proof of impropriety. Just because we think it looks shady isn't proof that anything is outside the bounds of regulations.

For the most part, it looks like any other meme stock that's detached from any financial realities, like GameStop. Wild swings are a feature, not a bug, particularly on a day where much of the market is down.

[hlthe2b]

10. Why did Merrick Garland wait almost 2 1/2 years to even begin to address Trump's criminality?

The appearance of impropriety is not proof of impropriety. Just because we think it looks shady isn't proof that anything is outside the bounds of regulations.

Thus the a need to INVESTIGATE. Assuming no impropriety without even investigating an unusual pattern is not what SEC doing its due diligence.

[FredGarvin]

14. Trump has power over the SEC

Much like he has over the Supreme Court.

[onenote]

6. Correct. Not in a vacuum. Part of a big downturn in the tech heavy NASDAQ.

Assumptions that the drop in Trump media stock, which is less than the drop in some other stocks, such as Uber or Super Micro Computers, are the result of some hanky panky are ignoring the overall market response to some negative reports and expectations about the tech sector.

[Bernardo de La Paz]

23. Nonsense. Trump stock has NOTHING to do with earnings (losses), R&D (none), marketing (none). It's brand value.

When tRump was soaring on betting markets, so did his stock, which is a kind of proxy because it is all brand, only brand (his name).

Kamala's speech Tuesday night was a spear thrust to the heart of the brand and it collapsed 22% on Wednesday. Information is starting to come out that his internal polling is scaring his team and that polling averages were distorted by biased "red wave" polls, most of which are lagging well behind the shifts going on this week after the fascist Bund rally at MSG Sunday.

[4catsmom]

30. This was gambling

You're right. they were betting on him being elected but now they're not so sure. Suckers IMO. Same type of thing like buying his trading cards or his 'dollars'

[onenote]

32. I don't think you understand how the markets behave.

Negative news in one sector of the market can and does often cause a widespread downturn in the market. You may think investors make company by company decisions but you'd be wrong. Concerns about the performance of certain companies in a particular sector, such as tech, end up influencing investor behavior with respect to other companies in the sector. The fact that earnings information for Meta or Microsoft disappoint market expectations shouldn't result in Uber stock dropping -- but it does, because that is how markets work.

[Bernardo de La Paz]

35. I don't think you understand how meme stocks and the markets behave

1) There is a lot of irrationality, especially around meme stocks like DJT.

2) DJT stock has nothing to do with standard, widespread, well-known investor concerns.

Most people know markets pay close attention to earnings. DJT has no earnings, just big losses.

In lieu of earnings, investors look for large revenues. DJT has almost no revenues.

In lieu of revenue, investors look for R&D and marketing as indicators of future products and future sales. DJT stock has no R&D and no marketing.

DJT is a meme stock, supported by fumes from the Trump name (brand). Thus it does not pay attention to how the market behaves.

[Bernardo de La Paz]

37. One month and one day records completely contradict you

Oct 14
NASDAQ 18502.69
DJT 29.95

Oct 29
NASDAQ 18712.75 Up about only 1% in two weeks
DJT 51.51 up 72% in two weeks

Oct 30
NASDAQ 18607.9 Down about half a percent on the day
DJT 40.03 Down about 22% on the day


No correlation between DJT stock and the markets.

[Prairie Gates]

2. First you pump

Then you dump

[Bernardo de La Paz]

24. The only people pumping are cult members and launderers

No analysts recommend the stock. No analysts even "follow" the stock.

Given odd bursts of large volume buying in previous days and months, there may be laundering, but I don't know the exact mechanism. It is noteworthy that large chunks of stock can be assigned without it being recorded in the market. But I think what happens is that big money buys early in the day, several times, making big purchases in the space of a few minutes which naturally raises the price of the stock to satisfy the sudden demand. This gets noticed and then there is a bandwagon effect which raises it some more. Then later those share are slowly dribbled back into the market for sale which doesn't get noticed and doesn't affect the price much. I don't have particular knowledge of what is going on behind those observations and surmises of mine.

[Think. Again.]

27. You just described pump & dump to a "T".

[Bernardo de La Paz]

31. Nope. That's not what the SEC means by pump and dump.

What do you mean?

Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock through false and misleading positive statements (pump), in order to sell the cheaply purchased stock at a higher price (dump). Once the operators of the scheme "dump" (sell) their overvalued shares, the price falls and investors lose their money. This is most common with small-cap cryptocurrencies[1] and very small corporations/companies, i.e. "microcaps".[2]

While fraudsters in the past relied on cold calls, the Internet now offers a cheaper and easier way of reaching large numbers of potential investors through spam email, investment research websites, social media, and misinformation.[2][3] -- Wikipedia

What I described about cult members is not pump and dump. They are not selling the stock, they were not frauding the stock holders. No analysts are following or recommending the stock.

Money laundering is not pump and dump.

There are three big players in DJT stock, as far as I can tell: cult members, day traders, and some big money. Day traders are the reason the stock often trades more in one day (115 million) than the entire public float (75 million shares). Cult members are basically buy-and-hold. Big money buying big chunks in the morning (gets noticed) and selling it slowly in small amounts the rest of the day (my surmise) is not pump-and-dump; it 100% legal and no reason to forbid it.

[Think. Again.]

33. Ya sure did...

Pump...

From Wiki:
"Pump and dump (P&D) is a form of securities fraud that involves artificially inflating the price of an owned stock .."

From your post:
"I think what happens is that big money buys early in the day, several times, making big purchases in the space of a few minutes which naturally raises the price of the stock to satisfy the sudden demand. This gets noticed and then there is a bandwagon effect which raises it some more. "


Then Dump...

From your post:
" Then later those share are slowly dribbled back into the market for sale..."

From Wiki:
"...in order to sell the cheaply purchased stock at a higher price (dump)."

[Bernardo de La Paz]

34. There is nothing illegal about buying a stock and selling it later. . . . . nt

[Think. Again.]

38. I said you described 'pump and dump' to a "T".

[Bernardo de La Paz]

41. Buying and selling stock is not pump and dump. P&D is illegal, buying & selling is not

If a big money player makes some big buys of a stock while saying nothing, that is not pumping. It is placing capital at risk.

For it to be pumping it has to be touted (praised, recommended) AFTER the stock has been bought. No big players are saying anything or making any recommendations on DJT stock before or after purchasing. Thus with no touting there is no pumping.

If a big stock holder sells stock it is only a dump part of pump and dump if there has been pumping by touting.

[Think. Again.]

42. Hmmm, but you described pump and dump to a "T".

Anyway, sorry about the multiple responses, I don't know how that happened, 2 of them even have the same post # somehow! Very strange, but I read a couple of recent posts about other strangeness happening on DU so who knows. Stay safe.

[Think. Again.]

39. I said you described 'pump and dump' to a "T".

[Think. Again.]

39. I said you described 'pump and dump' to a "T".

[onenote]

4. DJT stock is down as part of an across-the-board drop in tech stocks.

The tech-heavy NASDAQ is down almost 450 points, or 2.4%, as I type this. Many individual companies are down by an even greater percentage -- including NVIDIA, which is off by over 4%, Super Micro Computer, down by over 12%, Uber, down by 11 percent.

The downturn is being attributed to a variety of factors, particularly some less than optimistic earnings expectations for big tech.

[FredGarvin]

12. Earnings.

DJT earnings.

Ya gotta laugh

[Bernardo de La Paz]

21. Nah. Kamala's Ellipse speech Tues night knocked 22 % of the stuffing out of the stock Wednesday

Today is continuation of its slide, down 10% on this day so far.

DJT stock is completely unrelated to earnings (losses in this case), revenue (as good as none), R&D (none), marketing (none) or product (eyeballs, which are dwindling by the week).

The only thing the stock has is brand value (i.e. "Trump"). And as the article says, if he loses the election that drains away to zero.

[cstanleytech]

22. Some due to consumers waiting to do big tech purchase in the next two months for Christmas?

[Permanut]

7. As true patriots..

All the MAGAS should sell their cars, homes, everything, empty out the IRAs, 401ks and the grandkids college fund, and put all of the money into this stock. Buy low, right?

Disclaimer: I am not qualified in any way to give advice related to the stock market.

[Think. Again.]

29. Yes! YesYesYes!...

True red patriots should do all that AND take out big mortgages to buy homes in Florida!

[Klarkashton]

13. DJT is a cesspool for speculators and crypto gamers.

It was up for about a week with a bigger fool rally.
It should have never been listed.in the first place.

[FredGarvin]

17. Up 400% in the past month

Just enough for him to legally exercise his positions.
The Orange Clown is laughing his way to the bank

[FredGarvin]

15. Trump is cashing out some positions

Making billions in profits provided by offshore "investors"

Where is the SEC?

[ffr]

16. Some lucky investors cashed out BIG TIME on this grift!

[FredGarvin]

18. Trump

The investors were offshore pay-go entities.

[Bernardo de La Paz]

26. You know this how? If you are not talking through your hat I'd be interested to learn something

"pay go"? What are you talking about? Certainly not the political governmental paygo.

https://en.wikipedia.org › wiki › PAYGO
PAYGO - Wikipedia
PAYGO is the practice of financing expenditures with current funds rather than borrowing. Learn about the history, rules, and effects of PAYGO in the US federal budget, from 1990 to 2010.

[Mr. Sparkle]

19. This stock makes no sense, except it is a great way to funnel money to trump

that might be harder to do, any other way.

[FredGarvin]

20. Its easy

Case in point

[Bernardo de La Paz]

28. If it is easy, how is it done? Shares don't self-annihilate or get created on a whim

If it is easy, then it will be easy to explain.

Please explain, if you can.

[JoseBalow]

25. "trading was briefly halted"

[lastlib]

36. Well, with his astute business acumen, I'm sure...

...it will recover when he gets into office.


( for those not sure)

[FakeNoose]

43. The price could go to $0 after the election next week

From the OP link:

One current investor warned that if Trump loses the election next week, shares of DJT could plunge to $0.