Nasdaq briefly halted trading for Trump Media & Technology Group (DJT) today due to extreme volatility. The parent company of Truth Social has been enjoying significant momentum so far this week following Donald Trump’s Madison Square Garden rally. While trading has since resumed, it is clear that DJT stock is currently in the throes of a short squeeze. The only question is, how long can this momentum continue?
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In most cases, the answer would be not for long. But with the election coming up, the focus on DJT stock could continue to generate momentum, at least in the short term.
What’s Going On with Trump Media Stock Today?
Trading for Trump Media stock paused at 10:31 AM today and resumed at 10:36, according to NasdaqTrader. Shares have bounced back and, as of this writing, are up 11%. Despite its recent momentum, though, DJT stock is only up 6% for the past three months after shares plunged in late September.
Pausing a stock when trading becomes extremely volatile is commonplace for an exchange like Nasdaq. Such measures are often taken to protect investors and are often implemented when meme stocks like DJT experience high volatility. On October 16, Nasdaq imposed a trading halt on DJT when the stock mysteriously plunged.
Data from meme stock tracker ApeWisdom shows that DJT is currently the most discussed stock on r/WallStreetBets, the Reddit (RDDT) forum that helped launch the GameStop (GME) short squeeze of 2021. It makes sense that DJT stock would be targeted by speculative retail traders, especially as short interest in Trump Media is extremely high.
Retail Investors Pile into DJT Stock Amid Short Squeeze
Retail investors will likely pile into DJT stock as the election draws closer. However, today’s trading halt should be a reminder of the danger of betting on unstable meme stocks like DJT. Some experts have sounded the alarm about Trump Media, noting the company’s financial problems that won’t go away even if Trump is elected.
TipRanks’ Gabe Ross reports that top investor Mike Fay doesn’t think that DJT is a smart way to play the election. “Fay is critical of the company’s financials, noting that DJT has yet to post a profitable quarter, and its valuation of $7.8 billion appears highly inflated compared to its 2024 revenue of just $1.6 million,” he notes.
On top of that, no Wall Street analysts have issued ratings or price targets for DJT stock. This implies that they don’t take it seriously and aren’t optimistic that it will rise, regardless of the election results. Given DJT’s meme stock status, this makes sense. Today’s volatile trading is likely to continue, and if it does, there could easily be more trading halts.
