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Trump's Truth social media app project boosts partner's shares on Wall Street

Saturday, October 23rd 2021 - 09:05 UTC
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Trump continues to a popular character in the United States Trump continues to a popular character in the United States

Former US President Donald Trump, who had his own Twitter account suspended even while he was still in office for posting content the platform disapproved of, has successfully launched his networking brand, with shares rising over 200% on Wall Street.

Digital World Acquisition Corp, the company that will merge with Truth, Donald Trump's new social network, exploded on Wall Street Friday after its shares soared more than 200% for the second day, in what was perceived both as a sign of speculative fever coupled with a still-popular former head of state.

After being suspended several times Friday, amid impressive escalation and volatility, the Digital World Acquisition Corp stock rose 118% mid-day, to $ 98.97. Its price rose 200% Friday after having risen 357% at the close of Thursday. Based on the most recent share prices, the market capitalization of this idle group still stands at US $ 3.2 billion.

The rise also appears to be framed by the political motivations of buyers, now that the former president has proved he continues to be quite popular.

Analysts agree it was a colossal performance for a new company such as Digital World Acquisition Corp, which is traded under the symbol DWAC on the Nasdaq, which is a Special Purpose Acquisition Company or SPAC in English. These types of companies are shells that are listed on the stock market and then merge with a company to which they contribute funds that they raised when entering the market through the initial sale of shares.

In this case, DWAC will merge with Trump Media and Technology Group (TMTG). As a result, a new company will emerge which will boost Truth, Trump's new social media app.

This frenzy illustrates investors' appetite for the Republican millionaire project. DWAC is one of the most cited terms in the WallStreetBets forum of the Reddit site. WallStreetBets brings together 11 million small investors who are adept at high-risk positions on the stock market.

This blazing rise of DWAC is reminiscent of Gamestop. Like other titles that had the same progression at the beginning of the year, driven by purchases from an army of small investors interested in a development which, in Trump's own words, “will confront the big technology companies.”

The social network is slated for a beta launch next month and a full rollout in the first quarter of 2022. It is the first of three stages in the company's plans, followed by a video-on-demand subscription service, called TMTG +, It will feature entertainment, news and podcasts, according to a press release. The company plans to eventually compete with Amazon's cloud service and Google Cloud.

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