Several investors engaged in shorting the stock offering from Trump Media & Technology Group, the parent company of the Truth Social platform, where Donald Trump holds a significant stake, are revealing a secondary motive beyond mere financial gain as its value continues to plummet.
In conversations with the Associated Press, a number of retail investors have indicated their hope that their actions to bet against the company’s success will significantly impede Trump’s ability to profit and utilize the proceeds for his legal expenses and lavish lifestyle.
Recent reports from NBC News have shed light on efforts by executives at the tech company to curb short-selling activities, a practice where investors pay brokerage firms fees to borrow shares temporarily, expecting their value to decrease, thus allowing them to sell them back later at a profit.
Some investors informed the AP that despite these efforts, the company’s stock continues to spiral downward, and they are eager to contribute to it if it negatively impacts the former president.
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Elle Stange, an advertising executive from Idaho, shared with AP’s Bernard Condon that she has already earned $1,300 by betting against the company and remarked, “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.”
Considering a lock-up contingency that prevents the former president from selling any of his stock before September, these investors are aiming to inflict as much harm as possible in a short period while also capitalizing 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,” the AP reported.
