On March 26, 2024, pedestrians passed by the Nasdaq building in New York. The building was previously owned by Digital World but is now taken over by Trump Media, a social media platform founded by former President Donald Trump. Trump Media made its debut on the Nasdaq stock exchange on this day.
However, the company has run into trouble due to suspected illegal activity that has led to a decrease in the price of its shares. In a letter sent to Nasdaq Inc., CEO Devin Nunes accused the exchange of “naked” short selling, which involves selling shares that are not owned or borrowed from a legitimate source. This is generally considered illegal.
Nunes also mentioned that Trump Media’s shares were on a list maintained by Nasdaq indicating unlawful trading activity. Despite being worth billions of dollars, Trump Media has struggled financially and needs cash infusions to survive. Experts caution investors to be cautious when trading the stock due to the lack of fundamentals supporting its high valuation. In 2023, Trump Media reported a loss of $58 million and generated only $4.1 million in revenue.
On Friday following the release of Nunes’ letter, shares of Trump Media saw a slight increase before leveling off again later in the week. Both Nasdaq and Trump Media have yet to respond to requests for comment on the issue as this story continues to evolve with new developments and context emerging daily.