I'm not yet convinced to go there at this point.
Given the trading volume of DJT, the buying looks like it may be some wealthy supporter who has a few ten thousands to dispose of for, possibly, some return.
Or, there may be some other manipulation in play...
There's this...
Trump Media tells Nasdaq short sellers may be using "potential market manipulation" in DJT shares
www.cbsnews.com
... Trump Media & Technology Group is alerting the Nasdaq exchange that its stock " trading under the ticker DJT, after former President Donald Trump's initials " may be the victim of "potential market manipulation" due to short-selling activity.
The letter, which was sent Thursday to Nasdaq CEO Adena T. Friedman, claims that some traders are relying on so-called "naked" short selling, which is when an investor shorts a stock without first borrowing the shares. It's a practice that is effectively banned in the U.S., with regulators requiring trading firms to make sure that traders have the securities on hand to complete a short sale.
The complaint comes after a wild ride for Trump Media's stock since going public last month on the Nasdaq exchange. The shares lost two-thirds of their value from an initial peak, slicing billions of value from the fledgling media business, whose primary asset is the social media service Truth Social.
While Trump Media has regained some of that lost ground, rising 28% this week, some investors had complained on Truth Social that they suspected short sellers were contributing to the decline.
"Reports indicate that, as of April 3, 2024, DJT was 'by far' 'the most expensive U.S. stock to short,' meaning that brokers have a significant financial incentive to lend non-existent shares," Trump Media CEO Devin Nunes, a former Republican congressman from California, wrote to April 18 letter to the Nasdaq CEO.
Nunes asked for Nasdaq to "advise what steps you can take to foster transparency and compliance by ensuring market makers are adhering" to regulations that block naked short selling.
Shares of Trump Media rose $3.19, or 9.6%, to $36.38 on Friday.
The agencies that would regulate naked short selling include the Securities and Exchange Commission and FINRA, the financial industry regulatory authority that oversees broker-dealers, as the latter companies are those that execute short sale trades on behalf of customers. ...