Trump Media now has a combination of other factors that make for a high risk of another plummet. Here is the list:
First, the fundamentals are significantly weak, offering only a paltry level of "real" support for the stock price in the single digits
Second, the 50% increase in common shares, by itself, cuts the price per share support by 1/3. Those shares are just now being registered, so the official adjustments in the per share pricing and valuations are approaching
Third, the registering for "resale" of the enormous 204M shares now issued. The majority of the shares are not tradable (in any form) until the SEC approves the registration. Today's fewer outstanding shares will give way to both a major increase in shares and the addition of different investors
Fourth, "investors" should be in quotes because many shareholders come from having lent money to the company in the form of convertible debt. The "repayments" were forced conversions into common stock at the time of the merger. Will these new investor-lenders want to hang around, now that they have common stock shares? Probably not, especially after witnessing that recent selloff from $70 to the low-$20s
Fifth: True irony - There were important supporters and companies who helped create and oversee Digital World Acquisition Company' operations from 2021 to early 2024 that have now been sued by Donald Trump for various reasons. They all disagree and have filed counter-lawsuits. (It is the reason for escrowed shares - the lawsuits continue). So, do not be surprised if these shareholders are willing sellers
Sixth, there are sizable shareholdings that were acquired at prices below the $10 IPO price. That means that even if the stock price falls below $10, they could still sell for a gain. Therefore, the $10 price level is likely only a temporary support barrier
https://www.forbes.com/sites/johntobey/2024/05/01/trump-media-stock-djt-at-risk-of-a-new-short-selling-plunge/
damn those pesky facts and fundamentals...