Investors lose $420 million betting against Trump’s media company as stock soars

US Elections 2024: Investors betting on a decline in Trump Media & Technology Group’s stock faced significant losses, amounting to $420 million, as shares surged nearly 200% in the days leading up to Donald Trump’s recent election victory. The unexpected rally left many short-sellers reeling, with Trump’s strong election performance triggering a market rally in his favor.

Trump’s victory fuels market gains

Following Trump’s win, the stock continued its upward trend, climbing an additional 35% on Tuesday night. However, the excitement was short-lived, as trading opened on Wednesday with an 18% drop, reflecting a swift market correction. The rapid changes highlighted the volatility surrounding Trump-linked stocks, as well as the risks taken by investors betting on a decrease.

🇺🇸 BETTING AGAINST TRUMP COST INVESTORS $420 MILLION

Investors who bet against Trump’s media company—hoping its stock would drop—lost $420 million when the stock skyrocketed nearly 200% leading up to Trump’s election win.

After Trump’s victory, the stock surged another 35% on… pic.twitter.com/Wko4UVR320

— Mario Nawfal (@MarioNawfal) November 7, 2024

Trump’s financial comeback

For Trump, the rise in his media company’s value marked both a political and financial triumph. As the largest shareholder in the company, Trump’s stake reportedly reached an impressive $5.2 billion, securing his position both in the media landscape and in the financial markets. This windfall represents a major comeback, with Trump’s fortune taking a substantial leap following his election win.