Truth Social (NASDAQ:DJT) Slides as Company Calls for Short-Seller Investigation

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Social Media company Truth Social (NASDAQ:DJT) has been marked by wild swings in value, almost from one day to the next. It’s hard to believe that, as recently as January of this year, the stock was best known for being virtually flat. But now, it’s staging another wild swing, down over 4.5% in Friday morning’s trading as Truth Social calls on Congress to stage an investigation into those looking to sell Truth Social short.

Truth Social is calling on the chairmen of several House of Representatives committees to stage an investigation into eight different firms over matters of short-selling Truth Social stock. The urgings took on a similar form to those taken with Nasdaq regulators, warning about the potential for “naked” short sales going on, as well as “potential market manipulation.”

But this goes a bit further, calling for investigations into eight specific companies in regard to these claims. Specifically, Truth Social is targeting Apex Clearing, Velocity Clearing, Clear Street, TradePro, Cobra Trading, StoneX Securities, Cowen and Company, and Curvature Securities as part of the potential short-selling.

Timely Warning or Attention Play?

While the thought of naked short-selling is unconscionable, and no good trader should support such a thing, which is clearly against the law, there’s another potential explanation being advanced that has some concerned. We know that Truth Social hasn’t had a lot of substantive news lately, particularly in trying to explain the wild fluctuations in value. So, is all this a public relations gimmick designed to call attention to Truth Social? Some believe that’s the case. Others, meanwhile, figure that this is an excellent defensive measure, and it does seem to be working, especially given recent performance.

Is DJT Stock a Good Buy Right Now?

Turning to Wall Street, with no analysts yet in the fray, we turn to the last five days of trading for DJT stock. What we find when we get there is plenty more volatility, but overall, shares are up. In fact, Truth Social is running up about 8.02% during this timeframe, despite a loss in today’s trading so far.

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This article was originally published by a www.tipranks.com

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