Short interest in Trump Media & Technology Group (DJT.O) has jumped sharply following the company’s recent merger announcement, signaling that some traders are betting the stock may give back part of its recent gains, according to financial data firm S3 Partners.

Stock Rally and Merger Announcement

Shares of Trump Media, the social media company founded by former U.S. President Donald Trump, have surged over 30% since December 18 after announcing a $6 billion all-stock merger with Google-backed TAE Technologies. The stock initially spiked 63% in the two days following the announcement, reflecting investor enthusiasm about the company’s expansion into artificial intelligence-driven data centers.

Despite the rally, the stock has struggled over the long term, having lost nearly 60% in the past 12 months.

Short Interest Climbs

Since the merger news, short interest in Trump Media shares rose 31% to nearly 16 million shares, according to S3 Partners. At Friday’s close of $13.77, this represents roughly $218 million in bets that the company’s stock will decline. The current short interest is near the highest level since October 2025, highlighting market skepticism despite recent gains.

“The increase in short interest indicates that some investors are positioning for a potential pullback after the sharp rally,” S3 Partners noted.

Company Outlook and Ownership

The merger with TAE Technologies positions Trump Media to tap into the growing AI data center sector, adding to the Trump family’s diverse portfolio, which includes cryptocurrency, real estate holdings, and mobile services.

Donald Trump currently owns 115 million shares, approximately 40% of the company. After the merger, his stake would be reduced to roughly 20% of the combined company.

Analysts note that while the deal represents an ambitious growth strategy, the company’s history of volatility and losses has kept investors cautious.