By the close of trading on Monday, April 8, shares in Trump Media & Technology Group erased all of the gains made since the company’s Nasdaq debut on March 26, NBC News reported.
When trading began, Trump Media (listed as DJT on the Nasdaq) was valued at more than $79 a share.
By the close of trading on Friday, April 5, shares dropped by 12 percent to close at only $40.59 a share. In the first week of April, share prices lost 32 percent of their value.
The stock fell another 8 percent on Monday, April 8, closing at just $37.17 a share, bringing the total decline to 53 percent.
When Trump Media debuted on March 26, Donald Trump’s stake in the company was valued at about $5.2 billion. Less than two weeks later, Trump’s stake had dropped by over $2 billion to about $2.9 billion.
According to experts, there are several reasons why trading in Trump Media has been so volatile.
S3 Partners managing director Ihor Dusaniwsky told NBC News that the volatile trading reflected attempts by investors to bet on the stock’s continued decline. He said some traders hope to increase their gains by waiting for the price to decline further. Others are looking to “squeeze” short positions by betting that the price will start to rise again.
Matthew Tuttle, the CEO of Tuttle Capital Management told CNN that the volatility of the stock could have something to do with the Trump name. He added that with trading so volatile, retail investors are unlikely to consider long-term purchases.
Trump Media & Technology Group reported losing more than $58 million last year, generating only $4.1 million in revenue. Despite that, when the stock debuted, the company was valued at about $11 billion.
Professor Michael Ohlrogge from NYU School of Law told CNN that Trump Media’s stock appeared to be “completely untethered to fundamental value.”
