Trump Media, owner of Truth Social, to start trading Tuesday

Trump Media and Technology Group, the parent company of True Social, will begin

trading

on the NASDAQ tomorrow, but the

social

media

company is facing a lot of skepticism, including from our own Rick Newman. Skeptical Rick. I'm surprised, well this company is having a good ride for the Right now I mean it's up quite a bit so far this year and that's obviously based on the expectation that it's going public and people are

trading

. I think you know that many of the individual buyers of the stock are people who want to support Donald Trump and if he really wins the presidency in 2024, then the operating prospects for this company could be quite good, but there are a lot of things that can go wrong here. and I looked at the short-term interest, in other words, the people who bet. that the stock price is likely to fall rather than rise, so based on data from S3 Partners that tracks this sort of thing, the short interest in this company, which will be known as Trump Media and Technology Group when it goes public , it's around 11%, that's not very high, the average for most companies is about 3-4%, but short interest is severely limited by the lack of available sh shares.

I mean, to sell short you have to borrow the shares to pay for that privilege, eh, and there just aren't many shares there that you can borrow, so if you adjust for the lack of shares available to borrow to sell short short, there is a lot of interest in shorting these stocks, which Su suggests many investors think. that the price is going to drop and there are many reasons why it could drop, firstly, while the company has never been profitable, it is a niche player, to say the most, compared to other competitors like X and Facebook, Trump's personal financial situation is a factor here based on whether he might need to sell stock and then what happens if Trump loses the election?

I mean, you know at that point his political career will probably be over and what's the point of a

social

network where he's the main one. attraction so I mean this is going to be a very interesting way to watch and I think this stock is a very interesting way to monetize whatever you think will be the outcome of the 2024 presidential election if you think Trump is going to win. , you could go long the stock, if you think Trump is going to lose, you could go short the stock, so it's very interesting, it plays very interesting, we will continue to watch Rick Newman, thanks buddy from guys.