Investors Face Steep Costs to Short Trump Media's Stock
Despite high borrowing fees and limited share availability, short sellers are drawn to the stock's perceived overvaluation and recent market volatility.
- Trump Media's stock, now the most expensive in the U.S. to short, requires investors to pay annual financing costs of between 750% and 900% of the stock price.
- Despite the high costs, investors are drawn to short Trump Media due to its overvaluation, with a market capitalization of $6.6 billion against $4.1 million in revenue last year.
- The stock's volatility is highlighted by its 50% surge upon going public and a subsequent 21% drop after reporting a $58 million loss in 2023.
- Short sellers face challenges due to the limited availability of shares to borrow, with nearly all 5 million shares already borrowed, leading to potential 'short squeezes'.
- Shorting Trump Media's stock is seen as a high-risk move, with investors hoping for a dramatic price drop to make a profit despite the prohibitive costs.
NBC News 
CNBC 
