Trump Media Group Says Stock Market Is Being Manipulated To Drive Down Their Stock Price

Shares of the Trump Media Group stock are continuing to lose their value, and now the company says they've figured out what's happening. According to a letter from CEO Devin Nunes, the stock market is being intentionally manipulated to drive down the price of their company's stock. This makes absolutely no sense, and Nunes' logic behind his claim is even more laughable. But they will do anything to pretend that the company is not on life support, as Ring of Fire's Farron Cousins explains.

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*This transcript was generated by a third-party transcription software company, so please excuse any typos.

Shares of the Trump media group and the stock market continue to take a nosedive. Uh, they closed out at the end of last week at about $36 a share, which of course is still less than half of what they had hit at their high the day after they were released. So what's happening with true social in the Trump media group? People understand that they do not have a revenue model, that this entire company hemorrhages money, and they know that the long-term viability of it is not stable. That is why the price of the stock has gone down. But don't tell that to the people that work at Trump Media. Oh, God, no. CEO, Devin Nunes. Right? Devin Nunes, former lawmaker, he's in charge of Trump media. He is their CEO. He sent a letter to the Securities and Exchange Commission late last week telling them that the reason our stock prices is going so low is because there's a lot of people out there engaging in illegal activity to manipulate the market to make our stock go low.

Right. It's not because we're a horrible company. It's not because we only made 4 million last year while losing 58 million. No, no, no. It's not because of that. Uh, it's because all these outside forces that, oh, we, we, we can't pinpoint them. We don't know who they are, but we, we totally know to a degree that we think these people are doing illegal things, which is what's driving our stock price down. So yeah, if y'all could, if y'all could go ahead and take a look at that, that would, that would be really helpful for our stock. What Nunes says in his letter is happening is that you have what's called naked short selling, and that is the official term, naked short selling. And naked short selling is illegal. So what happens in a naked short sale is that somebody who does not own the stock, pretends to own it and then sells it, and then later on comes back and rebus it at the lower price and they get to pocket the difference.

So they've sold this stock that they don't own, and then they buy it back even though they don't own it, and they make a profit. That's illegal. And the difference between that and actual short selling, which is 100% legal, which is by the way, what's happening is that you have people who borrow shares of the stock from like a hedge fund or whoever owns them. They borrow it for a predetermined amount of time. They sell it to somebody at the high price for a predetermined amount of time. They say, I sell you this five weeks from now. I buy it back from you. Whatever the price is, you have to sell it to me after five weeks. So they sold it high, they buy it back low, they pocket the difference. That's legal. And yes, that is happening. And we know it's happening because Trump Media Group actually sent out a memo to investors prior to Devin Nunes memo to the SEC,

And they said, Hey, we got a lot of short sellers. Please stop letting them do this. It's killing us. And then Devin Nunes is like, well, what if, what if it's illegal? Short selling, I guess, I guess I'll send a letter to the SEC and we'll see what they have to say. Hmm. Do you have any evidence at all to back up anything you're saying, Devin? No. You just have a hunch you just want to deceive people because that's easier than admitting, Hey, we're basically piloting the Titanic here and we don't know what to do to make this company profitable. You know, Devin Nunes does not have any tech experience.