Amid the fervor of short squeeze speculation, DJT, the stock of Trump Media & Technology Group Corp. DJT, has emerged as a compelling opportunity for investors seeking high potential returns.
According to Fintel, a leading financial analytics platform, DJT currently ranks number one on their Short Squeeze Leaderboard. The Short Squeeze Screener and Leaderboard tracks companies with the highest likelihood of experiencing a short squeeze. DJT’s Short Squeeze Score of 99.41 is the highest on the leaderboard, indicating significant potential for a short squeeze.
However, it’s essential to note that shorting DJT at this juncture is not without risks. The stock has already experienced a short squeeze this year, soaring by over 317% from its lowest point.
At the end of April, the company abated investor fears regarding a short squeeze by allowing shareholders to recall shares, amid CEO Devin Nunes‘ accusations of stock manipulation, ultimately leading to a surge in DJT shares despite volatile trading since its debut on the NASDAQ.
Nonetheless, the stock is up 126.14% since April 16 lows. Over the past month, it is up 88.23%.
What’s Driving The Rally?
Live TV Platform
While there is speculation about a potential short squeeze, the recent increase in DJT’s stock price mainly stems from the company’s announcement of its plans to launch a streaming platform.
We covered it here: Trump Media Stock Roller Coaster Ride Continues After Live TV Platform Announcement
This platform will focus on news networks, religious channels, and documentaries, tapping into niche markets that have shown strong demand for specialized content.
Election Optimism
The upcoming election cycle adds another layer of intrigue to DJT’s stock. With the anticipation of former president Donald Trump potentially running for president again, many retail traders are betting on the stock, expecting a surge in advertising revenue for TruthSocial, the social media platform owned by Trump Media & Technology Group.
Foreign governments and lobbyists have previously spent millions advertising at Trump’s Washington Hotel, indicating a potential revenue stream for TruthSocial if similar patterns emerge.
Is DJT Stock Ripe For Another Squeeze?
With a short float of 84.61 and a days-to-cover ratio of 1.39 (according to Fintel), the conditions are ripe for another squeeze if positive news continues to drive up the stock price.
However, despite the optimism surrounding DJT’s stock, some analysts warn of its overvaluation. Trump Media & Technology Group is considered overvalued by many, with a market cap slightly smaller than Reddit Inc. RDDT, a social media giant with over 71 million users globally.
In comparison, TruthSocial, DJT’s flagship platform, generated only $4.1 million in revenue in 2023 and operated at a loss, making its valuation appear inflated compared to more established social media platforms like Reddit and X (formerly known as Twitter).
Also Read: Trump Media Vs. Reddit — Analyzing The Showdown Of Social Media Giants
As DJT’s stock continues to attract attention from traders and investors, it remains to be seen whether the company can capitalize on its ambitious plans and deliver sustainable growth.
The specter of a short squeeze looms large, adding an element of unpredictability to DJT’s stock price movements in the coming months.
DJT Price Action: Shares of DJT were up 3.7% at $53.57 at last check Tuesday.
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