NEW YORK, Jan 4, 2026, 13:53 ET — Market closed
- Trump Media ended Friday up 4% at $13.77, even as short interest climbed after its TAE merger announcement
- S3 Partners pegged short interest near 16 million shares, worth about $218 million in bearish bets
- Traders head into Monday watching for fresh merger filings and any update on the deal timetable
Short sellers have increased bets against Trump Media & Technology Group (DJT.O) after the company’s surprise merger plan with fusion-energy firm TAE Technologies ignited a sharp rally late last month. Short interest has climbed 31% since the announcement, even as the communication services stock ended Friday, Jan. 2 up 4% at $13.77, S3 Partners said.
That matters because short interest — shares borrowed and sold in a bet the price will fall — can amplify moves in a stock already prone to sharp swings. A rising short count can signal growing skepticism about the story driving a rally, even before any fundamentals change.
Trump Media has become an unlikely proxy for investor appetite for “AI power” themes as 2026 begins, with the company pitching the deal as a way to tap booming electricity demand from artificial-intelligence data centers. The stock’s rally has also drawn in momentum traders, leaving it sensitive to headlines and positioning.
Shares are up more than 30% since Dec. 18, when Trump Media announced the $6 billion all-stock transaction, and had surged as much as 63% in the two days after the news. The stock is still down nearly 60% over the past 12 months, underscoring how fast sentiment has shifted around the name.
S3 said the near-16 million shares sold short were around the highest level since October and represented about $218 million in bets against the stock. Short sellers profit if a stock falls, but can be forced to buy back shares quickly if it rises, adding fuel to rallies.
When the deal was unveiled, Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors, called it a “Barbenheimer mashup” that pairs Trump Media with a growth narrative tied to the AI power crunch. Reuters
Trump holds about 115 million Trump Media shares, roughly 40% of the company, Reuters has reported, and his stake in the combined company would be about 20%. That dilution — along with the fact that fusion has yet to produce a commercially viable reactor — sits at the center of the bull-bear divide.
From a near-term trading perspective, the stock’s last session ranged from $13.25 to $14.17 on volume of about 14.0 million shares, leaving those levels as the first markers many traders will watch. A break above Friday’s high would keep momentum in play, while a drop below the session low could invite faster profit-taking.
But the downside case is straightforward: the deal still needs filings and approvals, and fusion remains a long-dated technology bet rather than a near-term cash generator. If the timetable slips or scrutiny intensifies, the rally could unwind quickly — and the growing short position suggests some investors are already positioning for that.
With U.S. markets reopening Monday, traders will watch for any fresh disclosures on the merger process, including early regulatory or registration filings, and for signs of whether short interest continues to build. Beyond company-specific headlines, investors are also looking toward the first big U.S. data points of the year, including the Jan. 9 jobs report, for cues on risk appetite.
