Trump Media sank under $13 a few weeks ago, then bounced back to $30. Yesterday it plunged again, so fast that trading was automatically suspended by the exchange. The yo-yo-ing stock formally represents the obviously worthless "Trump Social" website, but is really MAGA tulips, an imaginary stake in a second Trump presidency. Given that he's a convicted fraudster surrounded by other grifters, fascists and courtiers, the pump and dump opportunities are endless.
Matthew Tuttle, CEO of Tuttle Capital Management, told CNN he suspects the selloff was caused by technical factors. He said that when Trump Media's share price failed to break through its 200-day moving average, a closely-watched technical level, traders "flipped" to bet against it. Up until Tuesday afternoon, Trump Media had been on fire. The stock had more than doubled its value in the span of three weeks, a stunning move driven by polling and betting odds that suggest the race for the White House could go either way.
"Sometimes the bottom falls out of these types of moves pretty quickly," Tuttle said in an email. University of Florida professor Jay Ritter noted that trading volume in shares of Trump Media was "enormous" on Tuesday.
"With meme stocks, where many of the holders are playing short-term momentum strategies, when the tide turns, everyone wants to move in the same direction," Ritter said, describing Trump Media as a meme stock akin to GameStop and AMC.
The meme stock comparison is interesting. GameStop had legs and they're still at it. AMC, though, is total carnage. No survivors.
