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Trump Media & Technology Group Stock Surge Following Nunes’ Call for Congressional Investigation
Trump Media & Technology Group stock experienced a notable 9% increase during Thursday afternoon trading sessions, a surge attributed to remarks made by CEO Devin Nunes. Nunes, in his latest address to Congress, urged for an investigation into firms suspected of engaging in illegal short-selling activities that potentially manipulate the company’s stock prices.
Congressional Inquiry Requested by Nunes
In a recent letter directed to the chairs of various House committees, Nunes emphasized the presence of ongoing anomalies in DJT trading activities. The letter, dated Wednesday, specifically urged Congress to obtain documents and testimony from eight new firms allegedly involved in facilitating short sales. The mentioned firms include ApexClearing, Clear Street, Cobra Trading, Cowen and Company, Curvature Securities, StoneXSecurities, TradePro, and Velocity Clearing.
Nunes highlighted Trump Media’s recent listing on Nasdaq’s “Reg SHO threshold list” as significant evidence of potentially unlawful trading practices influencing the company’s stock. These listings, occurring since April 2, are signaling irregularities within DJT stock trading that call for closer scrutiny.
Previous Calls for Investigation
Notably, just last month, Nunes initially called for an immediate investigation into what the company perceived as illegal manipulation of its stock values. The alleged malpractice involves “naked” short selling, a practice where shares are sold without being borrowed first. While such activities could explain failures in clearing securities, there exist multiple factors that could lead to a stock’s Reg SHO list inclusion.
On reviewing data provided to the company, Nunes identified four key market participants responsible for over 60% of Trump Media shares’ trading volume. These participants include Citadel Securities, VIRTUAmericas, G1 Execution Services, and Jane Street Capital.
Varied Stock Performance of Trump Media
Trump Media & Technology Group, known for its association with former President Donald Trump’s Truth Social platform, underwent a public debut on Nasdaq with the DJT ticker on March 26. This move followed a merger with Digital World Acquisition Corp., a special purpose acquisition company (SPAC). Since its public listing, the company’s market capitalization has fluctuated significantly, reaching highs nearing $10 billion and dropping to lows below $4 billion.
Currently, as of Thursday afternoon, the company’s shares are valued at $49.34 each. This trading price places Trump Media & Technology Group’s market capitalization at $6.74 billion, reflecting the ongoing market uncertainty surrounding the company’s stock performance.
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