Truth Social (NASDAQ:DJT), the controversial social media platform associated with the equally controversial former president Donald Trump, has been gaining rapidly for the last few days and no one’s been quite sure why. However, shares again surged, this time up nearly 5% in Tuesday afternoon’s trading, and possible explanations for the surges have emerged this time.
Jay Ritter, a University of Florida business professor who has particular expertise in initial public offerings, noted that Truth Social has been putting a lot of attention on the concept of short selling and how to protect individual shares from being used in such efforts. That, in turn, makes it harder to find shares to actually use in a shorting effort, sending up the rates and making the shares themselves more valuable.
Sympathy Sales?
There’s another potential cause that could be contributing to the recent Truth Social gains, and that’s the ongoing legal matters that the former president finds himself embroiled in. In fact, Trump just got hit with a $9,000 fine from the Manhattan Supreme Court over multiple violations of a gag order in the Stormy Daniels hush money case. The gains made in Truth Social stock, meanwhile, easily dwarf that $9,000 fine and might be a means for Trump supporters to funnel some extra cash in his direction while also making money on their own behalf as share prices increase.
Is DJT Stock a Good Buy Right Now?
Turning to Wall Street, a look at the last five days of trading for DJT stock shows that shares are still on the rise and at a fairly rapid clip. In the last five days alone, DJT shares are up 26.85%, and the gains have been fairly stable. There has been some volatility involved, but in most cases, any losses are countered with rallies to the upside in fairly short order.
