CEO of Tanking Truth Social Gets Torched for Whining So Much
Trump Media & Technology Group CEO Devin Nunes got told off Friday for his company’s terrible stock performance in a blistering statement that puts Donald Trump’s angry Truth Social barbs to shame.
Nunes, a former congressman who helms Trump’s social media venture, wrote a letter to the CEO of NASDAQ, Adena Friedman, asking her to prevent “naked short selling,” a technique used to try to benefit from an asset declining in value. Nunes asked Friedman to make sure trading firms disclose whether they are short-selling $DJT stock.
Truth Social’s stock value has plummeted since it debuted on the stock market a few weeks ago. As of Friday, it is worth about $35 a share, half of its initial price.
Citadel Securities, one of the firms named in the letter, had some choice words in response to Nunes’s complaint.
“Devin Nunes is the proverbial loser who tries to blame ‘naked short selling’ for his falling stock price. Nunes is exactly the type of person Donald Trump would have fired on The Apprentice. If he worked for Citadel Securities, we would fire him, as ability and integrity are at the center of everything we do,” the firm said in a statement, the likes of which is not usually heard on Wall Street.
Trump Media fired back with a statement of their own.
“Citadel Securities, a corporate behemoth that has been fined and censured for an incredibly wide range of offenses including issues related to naked short selling, and is world famous for screwing over everyday retail investors at the behest of other corporations, is the last company on earth that should lecture anyone on ‘integrity,’” a spokeswoman told The Wall Street Journal.
Naked short selling, an illegal practice, differs from conventional short selling, which is when traders borrow stock shares before selling them, hoping to profit later by buying back the stock at a lower price. In naked short selling, a trader never follows through on the promise to borrow. This can severely hurt a company’s stock price, and there is no shortage of people who would want to see Trump’s stock fail.
But the former president’s social media venture might not need the help. While its stock price was slightly up today, it has plummeted since its initial public offering a few weeks ago, hurt by the news that two of its investors were arrested for insider trading as well as poor revenue numbers reported from its SEC filings. Trump is legally barred from selling any shares in Trump Media for six months without board approval, and who knows what the company will be worth by the time he decides to sell.