Trump Media Short Interest Jumps 31% Post-Merger As Traders Bet DJT Rally Will Fade Despite AI Data Center Ambitions

Short sellers are ramping up bets against Trump Media & Technology Group (NASDAQ:DJT) following its high-profile merger announcement.

Short Sellers Build $218 Million Bearish Bet Against DJT

Short interest in Trump Media climbed sharply after the company said it would pursue a $6 billion all-stock merger with Alphabet Inc.'s (NASDAQ:GOOG) (NASDAQ:GOOGL) Google-backed TAE Technologies, according to data from S3 Partners.

The increase suggests a rising number of traders expect shares of the money-losing company to retreat after a brief rally.

Since the merger was announced on Dec. 18, short interest in Trump Media shares has jumped 31% to nearly 16 million shares, close to its highest level since October, S3 Partners said.

At Friday's closing price of $13.77, those short positions represent about $218 million in bets that the stock will decline.

Shares of Trump Media are up more than 30% since the announcement, after spiking as much as 63% in the two trading sessions that followed the news. The stock rose another 4% on Friday and is up 0.45% in after-hours trading, according to Benzinga Pro.

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Trump’s Stake Shrinks As Stock Struggles Long Term

President Donald Trump owns about 115 million shares of Trump Media, roughly 40% of the company. His ownership would fall to around 20% following the merger due to dilution, noted Reuters.

Despite the recent rally, Trump Media shares remain down nearly 60% over the past 12 months, underscoring ongoing concerns about the company's financial performance and long-term strategy.

Benzinga Edge Stock Rankings indicate that DJT is showing a solid price trend in the short term, but its outlook turns negative over the medium and long term, with additional performance indicators available here.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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