Investors have several stocks to be wary of today. The continued selling of shares of Trump Media and Technology (DJT) may potentially worsen. Next month, Trump’s lockup period that prevents him from selling DJT stock will end. Starting on September 20, the lockup for insiders will end.
Short-sellers are betting heavily that the former President will sell shares. Bears hold a 14.12% short float against the stock. Insiders could prevent a sell-off and shares falling to the teens by not selling in Sept.
On Tuesday, Chinese tech firm JD.com (JD) pulled back unexpectedly to close at $28.19. In after-hours trade, JD stock lost nearly 10%. Bloomberg reported that Walmart (WMT) is planning to sell its 144.5 million stock ownership. If this is true, Morgan Stanley (MS) will be the broker-dealer for the offering.
Walmart would avoid further risks of exposure to China amid its rising tensions with the U.S.
In the penny stock space, Mullen Automotive (MULN), Faraday Future (FFIE), Plug Power (PLUG), and Nikola (NKLA) are the speculations to avoid. Mullen is only worth $10 million. FFIE stock reverse split, a move that failed to stop the selling pressure.
Shorts hold a 27.6% short float against Plug Power. Insiders completed massive sales in the last 12 months. Additionally, the firm’s expenses are too high.
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