Investors admit shorting Truth Social stock to crash Trump's dream of cashing in
Some investors who have been shorting the stock offering from Trump Media & Technology Group, the parent company of the Truth Social platform in which Donald Trump holds a major stake, are admitting they have a secondary motive besides cashing in as its value declines.
In interviews with the Associated Press, more than a few retail investors suggested they hope their bet on the company floundering will severely damage Trump's ability to eventually cash in and use the proceeds to pay his legal fees and maintain his lavish lifestyle.
Last week, NBC News reported that executives at the tech company were taking extraordinary measures to tamp down on short-selling, where investors pay brokerage firms fees to borrow shares on a temporary basis in the belief that the shares will sink in price, and then sell them back later and pocket the difference.
ALSO READ: Revealed: What government officials privately shared about Trump not disclosing finances
On Friday, some investors told AP that stock in the company continues to spiral down and they are more than willing to help it if it hurts the former president.
Speaking to AP's Bernard Condon, Idaho ad executive Elle Stange claimed she has already made $1,300 betting against the company and stated, "This company makes no money. ... It makes no sense. He’s not as great a businessman as he thinks. A lot of his businesses go belly up, quickly.”
According to the AP report, "Several of these investors interviewed by The Associated Press say their bearish gambles using 'put' options and other trading tools are driven less by their personal feelings about the former president (most don’t like him) than their faith in the woeful underlying financials of a company that made less money last year than the average Wendy’s hamburger franchise."
Investor Jeff Cheung stated, “This is guaranteed to go to zero.”
Taking into account a lock-up contingency that bans the former president from selling off any of his stock before September, these investors are hoping to do as much damage in as short a time as possible while also profiting on the stock's volatility.
"Many who spoke to the AP say knowing their bets have helped slash the value of Trump’s 65% stake in half is an added political benefit. If some of their predictions are right, they may be able to someday push it to zero, making it impossible for him to tap it to pay his hefty legal bills or finance his GOP presidential campaign," Associated Press reported.
You can read more here.