this post was submitted on 26 Mar 2024
602 points (98.2% liked)

News

23310 readers
3869 users here now

Welcome to the News community!

Rules:

1. Be civil


Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.


2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.


Obvious right or left wing sources will be removed at the mods discretion. We have an actively updated blocklist, which you can see here: https://lemmy.world/post/2246130 if you feel like any website is missing, contact the mods. Supporting links can be added in comments or posted seperately but not to the post body.


3. No bots, spam or self-promotion.


Only approved bots, which follow the guidelines for bots set by the instance, are allowed.


4. Post titles should be the same as the article used as source.


Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.


5. Only recent news is allowed.


Posts must be news from the most recent 30 days.


6. All posts must be news articles.


No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.


7. No duplicate posts.


If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.


8. Misinformation is prohibited.


Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.


9. No link shorteners.


The auto mod will contact you if a link shortener is detected, please delete your post if they are right.


10. Don't copy entire article in your post body


For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.

founded 1 year ago
MODERATORS
 

Trump Media & Technology Group, the owner of struggling social media platform Truth Social, is began its long-delayed journey as a public company at Tuesday’s opening bell under the ticker symbol “DJT.”

The stock surged about 56% at the open, to $78, and trading was briefly halted for volatility. Trump Media shares have since stabilized at around $70, marking a 40% increase from Monday’s close.

Wall Street is assigning Trump Media an eye-popping valuation of around $13 billion — a price tag that experts warn is untethered to reality.

The skyrocketing share price comes despite the fact that Trump Media is burning through cash; piling up losses; and its main product, Truth Social, is losing users.

“This is a very unusual situation. The stock is pretty much divorced from fundamentals,” said Jay Ritter, a finance professor at the University of Florida’s Warrington College of Business, who has been studying initial public offerings (IPOs) for over 40 years.

you are viewing a single comment's thread
view the rest of the comments
[–] demosthememes@lemmy.dbzer0.com 17 points 7 months ago* (last edited 7 months ago) (1 children)

As tempting as that might be in the real world, in the financial world - this would be an expensive move, the most expensive short there is right now. Nearly all the available DJT stock was sold short but that has cost those people millions already.

Trump Media Is Now the Most Expensive US Stock to Bet Against. His theatrics are literally all that is driving the stock up because, on paper, it should be an obvious losing hand.

[–] Birch@sh.itjust.works 1 points 7 months ago (1 children)

What's the opposite of shorting and can you do that to a short?

[–] FlowVoid@lemmy.world 3 points 7 months ago (1 children)

The opposite of shorting a stock is buying a stock.

[–] BrokenGlepnir@lemmy.world 1 points 7 months ago (3 children)

I'm not sure about that. I thought shorting was a promise to buy the stock for someone in the future, in return for the price now. That way if it goes down you make a profit. The real opposition of buying is not buying. Or maybe buying the compeditor.

[–] __Lost__@lemmy.dbzer0.com 6 points 7 months ago

You are describing a put option, a contract to sell the stock at the end date for whatever price is in the contract. The opposite is a call option, a contract to buy the stock at the set price.

Shorting and puts are a bit different. To short a stock, you borrow the shares and sell them today, then need to give back shares at a later date to the person you borrowed them from.

[–] FlowVoid@lemmy.world 3 points 7 months ago

The opposite of buying is selling. When you buy, the price goes up and when you sell it goes down.

Normally you buy a stock before selling it. The opposite is selling a stock before buying it, which is known as shorting the stock.

[–] Furbag@lemmy.world 3 points 7 months ago

I thought shorting was a promise to buy the stock for someone in the future, in return for the price now.

Maybe this is worded funny, but you're close. You sell it for it's price today and then buy the same amount in the future for whatever it ends up being worth.

Shorting highly volatile securities is way more risky than shorting established low risk stocks. You could be on the hook for way more money than you're able to pay back and since the value of DJT right now is completely unhinged it's not subject to predictable market forces, industry trends, or conventional wisdom. It could go up to double, WSB could try a short squeeze, who knows.