3 ms·
Why is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easi
by YetAnotherNick 2y ago
Why is the valuation so high then? Surely all the HFTs have enough money to short it and earn money off of it. I think a company with $0 valuation would be easier to transfer money. As only he could sell his share for >$0 for donation.
- pavlov 2y agoTo short, you need to pay to borrow shares. And that’s not easy on a stock like DJT. It has a small float, and since professionals consider it overvalued, the premiums are unusually high. It also has an army of retail fans who can produce surprise spikes, meme stock style. Hedge funds make their money with trades that are not obvious to everyone, because if they were, they’d be too crowded. “Short DJT” is definitely in that category.
- ceejayoz 2y ago> Surely all the HFTs have enough money to short it and earn money off of it. They asked their shareholders to disable short loans (https://www.bloomberg.com/news/articles/2024-04-18/trump-media-djt-advises-investors-on-stymying-shorts-after-stock-selloff https://www.bloomberg.com/news/articles/2024-04-18/trump-med...). Before that, everyone was already shorting to the point of 500% fees. https://www.morningstar.com/news/marketwatch/20240406227/why-shorting-trumps-djt-stock-could-cost-you-a-500-fee https://www.morningstar.com/news/marketwatch/20240406227/why... "Based on that data, to short 100 shares of Trump Media & Technology Group at the current price, it would cost between $24,895 and $29,874 a year. That means the stock would have to fall about 1.4% a day just to cover the cost of shorting it. And if the short were held for a year, the bet would still lose about $20,000 to $25,000, even if the stock price fell to $1."