NEW YORK (AP) — Rooting for Donald Trump Failing has rarely been so profitable.
Just ask a group of mostly amateur Wall Street investors who have collectively made tens of millions of dollars over the past month betting that the stock price of their social media company… Social truth — will continue to fall despite heavy buying by Trump loyalists and wild swings that often reflect the candidate’s latest polls, court cases and outbursts on Trump Social itself.
Several of these investors interviewed by The Associated Press say their bearish bets using puts and other trading tools are driven less by their personal feelings about the former president (most don’t like him). not) than by their confidence in the sad underlying finances of the Associated Press. a company that made less money last year than the average Wendy’s hamburger franchise.
“This company doesn’t make money. … It doesn’t make any sense,” said Elle Stange, an advertising executive in Boise, Idaho, who estimates she bet $1,300 against Trump Media & Technology stock. “He’s not that big of a man. ‘business as he thinks. Many of his companies are going bankrupt. get up, quickly.
Jeff Cheung, an IT security specialist in Seattle, says, “This is guaranteed to reach zero. »
Friday morning, one month after Trump Media’s statement initial public offering sent its stock to $66.22, it plunged to $38.49. An AP analysis of data from research firms FactSet and S3 Partners shows that investors using put options and “short sales” have so far made paper profits of at least $200 million, not including put option costs, which vary from transaction to transaction.
Yet amateur traders, most risking only a few thousand dollars each, say the stock is too volatile to claim victory. So they cash out a little now, letting other bets be made and taking a look at the latest stock movements in the office, at the kitchen table or even on the toilet.
There have been many scary moments, including last week when DJT, the ex-president’s initials and stock symbol, jumped nearly 40% in two days.
“I don’t know which way the stock is going,” says Richard Persaud, a day trader in Schenectady, New York, while checking his iPhone amid the rally. “It’s incredibly overrated.”
Many of those who spoke to the AP say knowing their bets helped halve the value of Trump’s 65% turnout is an added political advantage. If some of their predictions are correct, they could one day reduce it to zero, making it impossible to use it to pay his hefty legal bills or fund his GOP presidential campaign.
They have a long way to go. Trump’s stake is still worth $4 billion.
Normally, investors betting on a stock to decline, especially a plucky breed of hedge fund traders called “short sellers,” will do a lot of work. They will review financial statements, develop expertise in an industry, talk with competitors, and even turn to “forensic accountants” to uncover hidden weaknesses in the books.
No need to…
