The management of Trump Media and Technology Group could be found wanting on a number of metrics, but not for a lack of tenacity. It appears that the company is determined to leave no stone unturned in its quest to halt what it terms as illegal manipulation of its stock price.
Trump Media CEO complains about "the apparent manipulation of the stock"
While the stock of a ~$0 revenue company that lacks a business plan but has a market cap of more than $10 billion does appear manipulated, we likely disagree as to the direction of said manipulation$DJT pic.twitter.com/BmHgxpDU8r
— Julian Klymochko (@JulianKlymochko) May 28, 2024
To wit, Trump Media and Technology Group has now written a letter to Commissioner P. Scott Jolly of the Office of Financial Institutions for the State of Louisiana, demanding an investigation into its stock price manipulation by short-sellers and certain market makers. The letter notes:
"In the last 30 trading days, an extraordinary volume of DJT shares traded have been shorts, leading to an astonishing quantity of FTDs. In fact, recently published SEC data indicate that FTDs exceeded 1 million DJT shares on eleven separate trading days between April 9, 2024, and April 30, 2024, with a peak of over 2.3 million FTDs on April 29, 2024, alone. Data made available to us suggest that serious anomalies may have occurred on that date, as well as on April 30 and May 1."
The letter then demands that Jolly investigate whether "the trading in DJT has violated Louisiana Securities Law."
In recent weeks, Trump Media and Technology Group has written letters to the Nasdaq exchange, several Congressional committee chairs, and the attorney general of Florida, Ashley Moody, demanding a dedicated investigation into the alleged manipulation of its stock price.
Trump Media and Technology Group views with a lot of trepidation its repetitive inclusion in the so-called threshold list, which is a tabulation of stocks that have an aberrantly high number of Failures to Deliver (FTDs) and can be potentially indicative of illegal naked short-selling. The firm also believes that "some sellers have been paying a drastically reduced rate to obtain so-called “locates” for seemingly illegitimate “naked” short sales."
As we noted in a dedicated post, Trump Media earned just $770,500 in revenue in Q1 2024, which translated into an operating loss of $12.1 million for the quarter. As a rare bright spot, do note that this loss was inflated by around $6.3 million in "one-time payments related to the closing of TMTG’s merger with Digital World."
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
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