Trump’s Failing Media Company Desperately Scrambles to Find Scapegoat
Donald Trump’s social media company has lost so much money that the CEO is asking Congress to look into what might be causing it.
Devin Nunes, a former Republican congressman himself, wrote a letter to several committees in the House of Representatives asking them to “open an investigation of anomalous trading of DJT,” CBS News reported Wednesday. $DJT is the stock symbol for Trump Media & Technology Group, which owns Truth Social.
Nunes’s letter, dated Tuesday, was sent to the House Judiciary, Financial Services, Ways and Means, and Oversight Committees, all of which are chaired by major Trump allies. The request comes after Nunes complained in—and was mercilessly mocked for—a different letter to NASDAQ CEO Adena Friedman last week about “naked short selling,” an illegal technique used to try to benefit from an asset declining in value.
In normal short selling, which is legal, traders borrow stock shares before selling them, hoping to profit later by buying back the stock at a lower price. Naked short selling differs in that a trader doesn’t keep their promise to borrow, dealing a severe blow to a company’s stock price.
In the letter to NASDAQ, Nunes asked Friedman to make sure trading firms disclose whether they are short selling the company’s stock. It was met with scorn on Wall Street, particularly from Citadel Securities, which released a statement mocking the former president and his media venture.
As of Wednesday, TMTG stock was trading at $35 a share, half of its peak price after the company’s initial public offering in March. Since its stock market debut, the company has suffered a series of setbacks, from SEC filings showing staggering losses to two of its investors being indicted for insider trading. The company’s total losses are said to be at least $2 billion.
It’s ironic that a Trump-controlled business would seek help from the U.S. government, when Trump himself is in legal trouble for his business practices, and also faces federal charges in Florida and Washington, D.C. The Republican-controlled House of Representatives is probably the only Trump-friendly federal government body where he could seek help, as pro-MAGA politicians seemingly have no qualms with publicly offering their services.