Trump Media Trends On Stocktwits As Stock Slumps After President’s Inauguration: Retail Says ‘Perfect Time’ For Shorting

Trump Media & Technology Group Corp. (TMTG) stock plunged in Tuesday’s pre-market session as the market braces for its first session under President Donald Trump’s second term, taking down retail investors’ mood as well.

After seeing some volatility in the run-up to the Jan. 20 inauguration, Trump Media stock fell 6:32% to $37.50 as of 8:23 a.m. ET.

The downside is blamed on the president and First Lady Melania Trump launching new meme coins—TRUMP ($TRUMP.X) and MELANIA Meme ($MELANIA.X). Although these coins rose on inauguration day, they have since seen steep declines, potentially due to the former staying mum on digital currencies in his inauguration address and the fact that none of his executive orders signed by him pertained to the crypto industry. 

A retail watcher of the stock said they would want to do nothing with a stock whose owner is “running crypto scams.”

Following Trump Media’s listing via the Special Purpose Acquisition Company (SPAC) route in late March, President Trump held a 60% stake in TMTG, which owns the Truth Social platform. In December, the president transferred $4 billion worth of shares he owned in the company to a trust in which his son Donald Trump Jr. is the sole trustee. 

Another watcher noted that Trump Media stock typically sells off after every major event and flagged a potential drop below the $30 level.

Some seem to think it is the “perfect time” to short the stock, as they anticipate a drop to $27 by the weekend.

The Trump-linked stock was the top trending ticker on Stocktwits early Tuesday.

Sentiment toward Trump Media stock sank further into ‘bearish’ territory (25/100), but message volume perked to ‘extremely high’ levels.

Since its March 26 listing, the stock has lost about 31%. It traded well off the intraday high of $79.38 hit in its debut session.

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