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Short Interest Rises in Trump Media Stock After $6 Billion Merger Announcement

Short Interest Rises in Trump Media Stock After $6 Billion Merger Announcement. Source: The White House, Public domain, via Wikimedia Commons

Short interest in U.S. President Donald Trump’s social media company, Trump Media & Technology Group, has surged following a major merger announcement, signaling that a growing number of traders are betting the stock could retreat after its recent rally. According to new data from financial analytics firm S3 Partners, short interest in Trump Media shares jumped sharply after the company revealed plans for a high-profile deal.

Since December 18, when Trump Media announced a $6 billion all-stock merger with Google-backed TAE Technologies, the company’s shares have risen more than 30%. In the two days immediately following the announcement, the stock climbed as much as 63%, reflecting strong speculative enthusiasm around the deal. However, that optimism is now being challenged by a noticeable increase in bearish positioning.

S3 Partners reported that short interest in Trump Media stock has climbed 31% since the merger announcement, reaching nearly 16 million shares. This level is close to the highest seen since October. With shares closing up 4% on Friday at $13.77, the total value of those short positions is estimated at approximately $218 million, indicating substantial expectations that the stock price could decline.

The merger represents an ambitious expansion for Trump Media, which continues to report losses. The deal positions the company to capitalize on the rapid growth of artificial intelligence infrastructure, particularly the rising demand for AI-powered data centers. It also adds to the Trump family’s expanding portfolio of ventures, which already includes cryptocurrency projects, real estate holdings, and mobile service initiatives.

Donald Trump currently owns about 115 million shares of Trump Media, representing roughly 40% of the company. Following the merger, his ownership stake in the combined entity would be reduced to around 20%. Despite recent gains, Trump Media shares remain under pressure in the longer term, having lost nearly 60% of their value over the past 12 months.

The rise in short interest underscores ongoing skepticism among investors about Trump Media’s valuation, financial performance, and long-term prospects, even as merger-driven momentum continues to attract attention in the market.

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