Market "Gurus" Bet Big Against DJT... Now Their Followers Are Drowning in $420 Million Losses

So, you thought it’d be a genius move to short Trump’s media empire and vote against the guy? “That’s a bold strategy, Cotton. Let’s see if it pays off.” 

Well, congratulations, you just ended up in your own version of “The Big Short”—except this time, the joke’s on you. Turns out, DJT didn’t just hold its ground; it flipped the script like “The Empire Strikes Back,” leaving short-sellers with losses that’d make even Gordon Gekko shake in his boots (that’s three movie references, are you not entertained?).

Turns out, DJT has become the stock market’s ultimate meme—no thanks to anything resembling profit, but rather the sheer force of Trump’s fans (and a dash of irony). According to S3 Partners, short-sellers in DJT lost a mind-bending $420 million as the stock tracked the election odds and turned into the go-to bet on Trump’s political success. (In other words, DJT holders were taking their “loyalty points” straight to the trading floor).

The pre-election period saw a 196% surge in DJT shares as Trump’s popularity climbed. Election night itself was like Wall Street’s answer to a bar fight, with the stock spiking 35% and trading halted multiple times as prices rocketed. DJT was the perfect setup for a short squeeze.

For anyone new to the market lingo, a short squeeze is Wall Street’s version of getting caught with your pants down. When a stock shoots up, short-sellers scramble to buy back shares to cover their positions, which only pumps up the price even more. It’s every short seller’s worst nightmare, and DJT’s price surge had them wetting the bed in terror.

After the election hype, DJT shares took a couple floors down, giving back some of the gains as traders cashed in. So, now that the initial political fireworks are over (though I’m sure there will be lots of drama), what’s the verdict on DJT? Even die-hard Trump fans might have to squint to find a reason to hold onto this stock based on, well, anything financial. 

Trump Media’s market cap now sits at $7.8 billion. Especially when you consider that it brings in about as much cash as a lemonade stand—just $1 million in revenue (and a $23.7 million loss last quarter, by the way). 

It wasn’t just the retail crowd who hated Trump that dove headfirst into shorting—some of those "serious" financial publications (no need to name names; if you know, you know) jumped on the bandwagon too, banking on reality finally catching up to the hype. (Spoiler: reality called in sick.)

Fundamentals should, theoretically, matter at some point—after all, DJT’s price is based less on financials and more on pure belief in Truth Social’s streaming dreams. After yo-yoeing between $37 and $44 yesterday, the stock has tumbled back down to $35. But make sure to keep an eye on it throughout the day (it’s already up 5% in premarket trading).

PS: So, if watching DJT crush short-sellers has you feeling a little FOMO, maybe it’s time to stop sitting on the sidelines and start catching these moves yourself. DJT’s leap is just a glimpse of the action out there. Our last alert (Friday) rode a political wave for a wild 116% jump in minutes (and we’ve alerted our members to AT LEAST one 100%+ move every single week since we started). 

Our system keeps sniffing out stocks ready to blow, like a bloodhound for short squeezes. Want to stop watching from the bleachers and actually make a play? Click here to join Stocks.News Premium. Just don’t be the one shorting the next meme stock (we can’t help with that).

Stock.News does not have positions in companies mentioned.